Winnipeg Commodity Exchange Canola and Feed Grain Futures Close Lower on Weakness in Chicago Board of Trade

Strategic Insights -

The Winnipeg Commodity Exchange (WCE) saw canola futures drop modestly in light trade on Monday, driven by weakness in Chicago Board of Trade soy complex futures, according to analysts. The absence of export or crusher demand, combined with bearish technical signals, contributed to the decline. The Canadian dollar's weakness also had an impact, as traders believed canola values are well priced against competing oilseeds. Commodity funds increased their short position by approximately 500 contracts, while routine export pricing and commercial buying met selling from commodity funds and commercials.

Key Takeaways:

  • Canola futures dropped modestly in light trade due to weakness in Chicago Board of Trade soy complex futures, analyst's said.
  • The absence of export or crusher demand, combined with bearish technical signals, contributed to the decline in canola prices.
  • The Canadian dollar's weakness had an impact on canola prices, with traders believing canola values are well priced against competing oilseeds.
  • Commodity funds increased their short position by approximately 500 contracts, contributing to the downward pressure on canola prices.
  • Refco and Agricore United were steady sellers, while farmer pricing remained light but steady.
  • Canola options trade was light, with activity in Nov 350, 360, 370, and 400 calls and Nov 350 and 370 puts.
  • Feed grain futures closed lower in light trade, driven by the weak tone in CBOT grains and talk of large feed grain supplies.
  • Western barley was narrowly mixed, with the nearby contract supported by rain delays in the harvest, while deferred contracts were pressured down by ideas of large supplies.

Statistics:

  • Canola futures dropped by an unspecified amount.
  • Commodity funds increased their short position by approximately 500 contracts.
  • Activity in canola options trade recorded in Nov 350, 360, 370, and 400 calls and Nov 350 and 370 puts.
  • Feed grain futures closed lower in light trade, with the nearby contract supported by rain delays in the harvest.
  • Deferred contracts were pressured down by ideas of large supplies, with weakness also tied to the new contract lows in feed wheat.

Sources:

  • Resource News International via COMTEX (http://www.comtexnews.com)