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Mixed Trading in Canola and Feed Grain Futures on Winnipeg Exchange

Strategic Insights

— 1 min read

Trading in canola and feed grain futures on the Winnipeg Commodity Exchange (WCE) was mixed on the day, with most activity confined to the canola pit. Poor weather conditions for development and harvest activities provided some support, while commercial and commission house buying contributed to the upward price action. However, commercial liquidation and fund-related selling tempered the upside, with hedge offers from elevator companies and weak CBOT soybean and soyoil futures also limiting gains. Agricore United was a notable seller of canola, while spreading of the Nov/Jan contracts at C$4.60 under was a minor feature of the trade.

Key Takeaways:

  • Canola futures traded in a mixed range due to poor weather conditions, commercial buying, and commercial liquidation.
  • Commercial and commission house buying contributed to upward price action, but was tempered by commercial liquidation and fund-related selling.
  • Hedge offers from elevator companies and weak CBOT soybean and soyoil futures limited gains in canola.
  • Western barley futures were lower due to declines in CBOT corn futures and light commercial offerings.
  • Spreading of the Oct/Dec contracts at C$2.50 under was a feature of the barley trade.
  • New contract lows were established in feed wheat futures due to poor weather in Western Canada and expectations of a large percentage of the crop grading as feed.
  • Commission house and commercial selling in feed wheat, with some of the selling said to be hedge related.

Statistics:

  • Canola futures traded in a mixed range, with some buyers contributing to upward price action.
  • Commercial liquidation and fund-related selling tempered the upside in canola.
  • Agricore United was a notable seller of canola, accounting for a significant portion of the trade.
  • The Nov/Jan contract spread in canola was C$4.60 under.
  • Western barley futures were down due to declines in CBOT corn futures, with losses capped by the absence of farmer deliveries and light end-user pricing.
  • The Oct/Dec contract spread in barley was C$2.50 under.
  • Feed wheat futures reached new contract lows, with prices affected by poor weather in Western Canada and expectations of a large percentage of the crop grading as feed.

Sources:

  • Resource News International via COMTEX (http://www.comtexnews.com)
  • Winnipeg Commodity Exchange (WCE)

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