Winnipeg Commodity Exchange: Canola Futures Decline Amid Market Pressure

The Winnipeg Commodity Exchange (WCE) saw mostly lower grain and oilseed futures at midsession on Monday, with canola futures experiencing downward pressure due to losses in the CBOT soy complex. Producers and line companies were noted sellers as hedges built up over the weekend, but exporter and domestic crusher buying helped limit the downside in canola. The Canadian dollar's weaker tone provided some support to the canola market, keeping crush margins stable despite a decline in CBOT soyoil values.

Key Takeaways:

• Canola futures were down at midday due to losses in the CBOT soy complex.
• Producers and line companies were the noted sellers as hedges built up over the weekend, resulting in roughly 3,300 canola contracts traded by midsession.
• Exporter and domestic crusher buying helped limit the downside in canola, but these commercial orders were cleaned up soon after the open.
• A weaker tone for the Canadian dollar helped lend support to the canola market, keeping crush margins stable despite a decline in CBOT soyoil values.
• Commodity funds were light buyers, only purchasing on a scale-down basis.
• Western barley futures were narrowly mixed at midsession in light commercial trade, with less than 100 contracts traded by midday.
• Feed wheat values were holding steady, with no trades reported by midday.

Statistics:

• Approximately 3,300 canola contracts had traded by midsession.
• The July/Nov spread in canola futures traded between C$15.50 and C$16.90.
• Less than 100 contracts of Western barley had traded by midday.
• No trades were reported for feed wheat by midday.

Sources:

• Resource News International, Winnipeg, MB, May 15, 2006 (Resource News International via COMTEX)