Winnipeg Canola and Feed Grain Futures See Mixed Activity

Strategic Insights -

As the US markets closed for the Memorial Day long weekend, the Winnipeg Commodity Exchange (WCE) saw thinly traded canola and feed grain futures, with market participants staying on the sidelines. Canola values received marginal support from Japanese pricing and weather concerns, although trade volumes remained extremely low, with only 98 contracts changing hands on the day. The weekend weather across the Canadian Prairies, with excessive precipitation delaying seeding and damaging crops, also contributed to the market's support for canola.

Key Takeaways:

  • Canola futures at the Winnipeg Commodity Exchange (WCE) were marginally higher at midday due to Japanese pricing and weather concerns, despite extremely low trade volumes.
  • Only 98 contracts were traded in total, with only nine trades recorded, highlighting the market's lack of activity.
  • The weekend weather across the Canadian Prairies, with excessive precipitation delaying seeding and damaging crops, was seen as supportive for canola futures.
  • Export sources confirmed overnight sales of 7,000 to 8,000 metric tons of Canadian canola to Japan on the spot cast market, although price and shipping details were unavailable.
  • Western barley and feed wheat were both untraded at midsession, although barley futures were bid higher on expectations of stronger CBOT corn futures on Tuesday.
  • Phil Franz-Warkentin, a local trader, commented on the market's lack of volumes, saying "We're parrots of the US," highlighting the market's reliance on US market direction.

Statistics:

  • 98 contracts were traded in total on the day, with only nine trades recorded.
  • Canola values were marginally higher at midday, receiving support from Japanese pricing and weather concerns.
  • 7,000 to 8,000 metric tons of Canadian canola were sold to Japan on the spot cast market, although price and shipping details were unavailable.
  • Barley futures were bid higher on expectations of stronger CBOT corn futures on Tuesday.

Sources:

  • Resource News International via COMTEX, "Winnipeg, MB, May 31, 2004"
  • Phil Franz-Warkentin, Resource News International
  • COMTEX (http://www.comtexnews.com)