Winnipeg Commodity Exchange: Canola Futures Rise on Expectations of Chicago Board of Trade Gains

Traders on the Winnipeg Commodity Exchange (WCE) experienced moderate gains in canola futures on Monday, driven by expectations that Chicago Board of Trade (CBOT) futures would rise in the following session. The activity was relatively quiet, with trade largely driven by the US Memorial Day holiday closure of the CBOT. Brokers cited excessive rainfall in the US soybean fields as a major factor contributing to the gains, alongside Japanese export pricing and weather issues in western Canada.

Key Takeaways:

• Canola futures posted moderate gains in very small activity, with a C$1.00 spread in July/Nov trades.
• Excessive moisture over the weekend in Manitoba and Eastern Saskatchewan required the replanting of some fields, while dry areas of Saskatchewan and Alberta received light precipitation.
• Overnight, Japan booked 7,000 to 8,000 tonnes of canola, contributing to the gains.
• Canola options saw small trade in the Nov 350 puts.
• Feed grains posted small gains in almost no activity, with western barley rising due to talk of CBOT corn markets being higher due to excessive moisture in the US corn belt.
• Feed wheat was modestly higher due to a lack of interest.

Statistics:

• Canola futures rose by moderate amounts in very small activity.
• The July/Nov spread in canola futures was at C$1.00.
• Excessive rainfall in the US soybean fields was cited as a major factor contributing to the gains.
• Japan booked 7,000 to 8,000 tonnes of canola overnight.
• CBOT corn markets were expected to be higher due to excessive moisture in the US corn belt.

Sources:

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