Winnipeg Commodity Exchange Futures Called Higher on Monday

Grain and oilseed futures at the Winnipeg Commodity Exchange are expected to open higher on Monday, driven by sharp gains anticipated in CBOT soybeans and corn. Traders are also anticipating support from domestic crusher buying in canola, though the stronger Canadian dollar is seen tempering commercial demand. The dryness concerns in the South American soybean crop are driving oilseed markets, with commodity funds still short the canola market. Market players are also expecting decent farmer hedges to limit upside potential in canola futures.

Key Takeaways:

• Grain and oilseed futures at the Winnipeg Commodity Exchange are expected to open higher on Monday, influenced by sharp gains in CBOT soybeans and corn.
• Canola futures are called C$2.00 to C$4.00 higher, supported by sharply higher calls in the CBOT soy complex and domestic crusher buying.
• The stronger Canadian dollar is expected to temper commercial demand for canola, limiting potential upside.
• Western barley and feed wheat are called steady to C$1.00 higher, supported by higher calls in CBOT corn.
• Traders anticipate decent farmer hedges to limit the upside in canola futures.
• Commodity funds are still short the canola market, with some speculative buying expected at the open.
• Exporters are not actively participating in the market, and end users are well covered and backing away from the market.

Statistics:

• Expected increase in canola futures: C$2.00 to C$4.00
• Anticipated gain in CBOT soybeans and corn: sharp gains
• Expected tempering effect of the stronger Canadian dollar on commercial demand: significant
• Expected increase in Western barley and feed wheat: steady to C$1.00 higher
• Current short position of commodity funds in canola market: not specified

Sources:

• Research News International via COMTEX
• Winnipeg Commodity Exchange
• US Commodities Board (CBOT)