Grain and Oilseed Futures Called Higher at Winnipeg Commodity Exchange

Strategic Insights -

Grain and oilseed futures at the Winnipeg Commodity Exchange (WCE) are expected to rise, influenced by firmer calls in CBOT soybeans and corn. The canola market is also anticipated to benefit from favorable weather forecasts in the US Midwest, which should underpin the oilseed markets. However, traders are cautious about the potential impact of shifting weather forecasts and the looming harvest season on the canola market. Western barley and feed wheat are also expected to remain steady to higher, but may struggle to move up due to harvest pressure.

Key Takeaways:

  • Grain and oilseed futures at the Winnipeg Commodity Exchange (WCE) are called higher, driven by spillover support from CBOT soybeans and corn.
  • Canola futures are expected to rise C$1.00 to C$2.00 at the open, supported by favorable weather forecasts in the US Midwest.
  • Western Canadian canola crop is in fairly decent shape, but weather risks and looming harvest season may limit upside potential.
  • Broker expects "a lot of farmer selling waiting to come forward in canola," which would cap any gains.
  • Early strength in the Canadian dollar may temper any advances in canola futures.
  • Western barley and feed wheat are called steady to C$1.00 higher, taking cues from firmer calls in CBOT corn.

Statistics:

  • Canola futures expected to rise C$1.00 to C$2.00 at the open.
  • Western barley and feed wheat called steady to C$1.00 higher.
  • 30-40% of western Canadian canola crop already harvested, according to sources.
  • CBOT soybeans and corn showing firmer calls, influencing WCE grain and oilseed futures.
  • US Midwest weather forecasts calling for hot, dry conditions, potentially supporting oilseed markets.

Sources:

  • Resource News International, August 8, 2005
  • Winnipeg Commodity Exchange (WCE)
  • CBOT (Chicago Board of Trade)