Winnipeg Commodity Exchange: Canola and Feed Grain Futures See Decline

Strategic Insights -

The Winnipeg Commodity Exchange saw a decrease in grain and oilseed futures on Monday, with canola futures experiencing a sharp drop in active trade. This decline was attributed to losses in the Chicago Board Of Trade soy complex futures and bearish technical signals. The market saw moderate activity in spreads, with the May/July spread attracting the most interest. An estimated 4,712 contracts were involved in the spread trade, with a total estimated volume of 8,842 contracts, up from the previous Friday's 4,001 contracts.

Key Takeaways:

  • Canola futures dropped sharply in active trade, influenced by losses in the Chicago Board Of Trade soy complex futures and bearish technical signals.
  • The May/July spread attracted the most interest in the spread trade, with an estimated 4,712 contracts involved.
  • Commercials dominated the trade, with crusher buying and routine export pricing evident.
  • Farmer selling has slowed due to farm gate prices below $6.00/bu and spring road weight restrictions.
  • Feed grain futures moved lower in the wake of losses in CBOT grains, amid a lack of fresh news.
  • Traders noted good levels of commercial buying interest under the market, with an estimated 1,000 to 2,000 metric tons of canola booked overnight by Japan.
  • Western barley edged down in very small activity, with an estimated 151 contracts traded.
  • Feed wheat posted losses in light volumes, with an estimated 268 contracts traded.

Statistics:

  • Canola futures dropped by an estimated X amount in active trade.
  • The May/July spread attracted an estimated 4,712 contracts in the spread trade.
  • Total estimated volume for the day was 8,842 contracts, up from 4,001 contracts on the previous Friday.
  • Feed grain futures moved down due to losses in CBOT grains, with no specific percentage mentioned.
  • Japanese buyers booked 1,000 to 2,000 metric tons of canola overnight.
  • Western barley traded an estimated 151 contracts, down from 154 contracts on the previous Friday.
  • Feed wheat traded an estimated 268 contracts, up from 4 contracts on the previous Friday.

Sources:

  • Resource News International via COMTEX
  • Resource News International News Provided by COMTEX (http://www.comtexnews.com)
  • Don Bousquet, Resource News International Copyright 2005
  • COMTEX (http://www.comtexnews.com)