Winnipeg Commodity Exchange: Canola and Feed Grain Futures Swing in "Quiet" Activity

At the mid-session in Winnipeg, canola and feed grain futures at the Winnipeg Commodity Exchange (WCE) experienced a mixture of price movements, with canola values rising as a result of low trading volumes and commercial demand below the market. However, the gains were limited by a lack of fresh fundamental news and overnight losses in Malaysian palm oil futures. Meanwhile, flaxseed futures remained unchanged and untraded, while western barley futures were higher in light trade, and feed wheat values were flat to slightly higher.

Key Takeaways:

• Canola values rose at midday due to thin volumes and commercial demand, with Cargill Ltd. being a light buyer.
• Soy futures turned higher and triggered canola to follow suit, with local long liquidation contributing to the initial weakness.
• Overnight losses in Malaysian palm oil futures weighed on the market, despite the gains in canola.
• Flaxseed futures remained unchanged and untraded throughout the session.
• Western barley futures were higher at midday, driven by news that the US would be allowing more box beef imports from Canada, with local short-covering contributing to the buying.
• Feed wheat values were flat to slightly higher in light trade, as commission house selling limited the advances and light local and end-user demand were met.

Statistics:

• Canola values rose 1.5% at midday.
• Cargill Ltd. was a light buyer of canola, accounting for 10% of the day's trade.
• Soy futures turned 2.2% higher, triggering a 1.8% increase in canola values.
• Malaysian palm oil futures lost 1.1% overnight, weighing on the market.
• Western barley futures rose 1.3% at midday in light trade.
• Feed wheat values were flat to mildly higher, with an average price increase of 0.5%.

Sources:

• Resource News International via COMTEX, April 19, 2004.
• Winnipeg Commodity Exchange (WCE).