Winnipeg Commodity Exchange Barley Futures Plummet

Strategic Insights -

The western barley future at the Winnipeg Commodity Exchange established a new low on Wednesday, moving down to the C$116.10 area before settling at $116.60. Market participants expect these levels to be tested further in the weeks ahead. The cash market for barley has been steady, but regional variations in supply and demand are causing price fluctuations. Analysts believe that Manitoba's premium pricing for barley is driven by tight feed wheat supplies due to production and disease problems. In contrast, Alberta's cash values remain on the defensive due to abundant feed supplies.

Key Takeaways:

  • The May western barley future at the Winnipeg Commodity Exchange established a new low on Wednesday at C$116.10, before settling at $116.60.
  • Market participants expect these levels to be tested further in the weeks ahead.
  • The cash market for barley has been steady, but regional variations in supply and demand are causing price fluctuations.
  • Manitoba's premium pricing for barley is driven by tight feed wheat supplies due to production and disease problems.
  • Alberta's cash values remain on the defensive due to abundant feed supplies.
  • A cash dealer believes that the relationship between the cash barley market and the futures market is becoming less important.
  • The market may move towards a similar situation as the flaxseed contract, with potential removal from the exchange.
  • Analysts doubt the involvement of Alberta producers in the barley futures market, with no reported participants from the province.

Statistics:

  • The western barley future at the Winnipeg Commodity Exchange moved down to C$116.10 on Wednesday.
  • The May western barley future settled at $116.60.
  • Abundant feed supplies in Alberta are causing cash values to remain on the defensive.
  • Manitoba's feed wheat supplies are tight due to production and disease problems.

Sources:

  • Resource News International (2006)
  • Winnipeg Commodity Exchange (WCE)
  • Anonymous Market Analyst
  • Anonymous Cash Dealer
  • COMTEX