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Commodity futures

Canola Futures Trade Higher Amid Unexpected Strength in Soybean Values

Strategic Insights

— 1 min read

Canola futures at the Winnipeg Commodity Exchange traded at mainly higher levels at mid-session, with unexpected strength in CBOT soybean values providing support to the crop. Market watchers attributed the gains to light exporter pricing of old export business and the surfacing of some fresh domestic crusher demand. However, elevator company hedge selling tempered the advances, while strength in the Canadian dollar on Thursday worked against the price climb in canola. Spreading was the dominant feature in the commodity, with traders linking some of the volume total in canola to the March/May contracts.

Key Takeaways:

  • Canola futures at the Winnipeg Commodity Exchange traded at mainly higher levels at mid-session, with an estimated 4,378 contracts changing hands.
  • Unexpected strength in CBOT soybean values provided support to canola, with traders citing light exporter pricing of old export business and fresh domestic crusher demand.
  • Elevator company hedge selling tempered the advances in canola, while strength in the Canadian dollar on Thursday worked against the price climb.
  • Spreading was the dominant feature in the commodity, with traders linking some of the volume total in canola to the March/May contracts at C$7.20 to C$7.50.
  • Feed wheat futures were mainly lower, with steady commercial liquidation orders amid a lack of buyers accounting for the downward price slide.
  • Western barley futures were mostly lower, with steady farmer deliveries and only limited end-user demand weighing on values.

Statistics:

  • Canola futures traded at higher levels, with an estimated 4,378 contracts changing hands at mid-session.
  • The price of canola contracts ranged from C$242 to C$244 per metric ton.
  • The Canadian dollar strengthened on Thursday, working against the price climb in canola.
  • 252 feed wheat contracts had changed hands at mid-session, while 1,372 western barley contracts had traded.
  • The March/May contracts in canola traded at C$7.20 to C$7.50.

Sources:

  • Resource News International via COMTEX
  • Winnipeg Commodity Exchange (WCE)

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