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Commodity futures

Winnipeg Commodity Exchange Futures Called Steady to Higher

Strategic Insights

— 1 min read

Despite sharp declines on Friday, grain and oilseed futures at the Winnipeg Commodity Exchange were expected to recover on Monday, with canola futures poised for a rebound following improved weather conditions in western Canada. The Canadian dollar's strength was offset by scale-down exporter demand, which was seen as supportive for canola. Meanwhile, feed wheat and western barley were considered overdone to the downside and due for a correction higher.

Key Takeaways:

  • Grain and oilseed futures at the Winnipeg Commodity Exchange were called steady to higher on Monday, with canola futures expected to rebound after a sharp decline on Friday.
  • Improved weather conditions in western Canada over the weekend allowed farmers to make harvest progress, leading to better-than-expected yields.
  • CBOT soybean futures were also called slightly higher, which was expected to be supportive to the Winnipeg market.
  • The Canadian dollar's strength limited any upside in canola, but scale-down exporter demand was seen as supportive.
  • Feed wheat and western barley were considered overdone to the downside on Friday and due for a correction higher.
  • Traders thought it would be tough to hold rallies in canola if the harvest weather held.
  • Canola was seen as looking very cheap to buyers, limiting its downside potential.

Statistics:

  • Grain and oilseed futures at the Winnipeg Commodity Exchange were called steady to higher on Monday.
  • Canola futures were expected to rebound 1-3 cents on Monday.
  • CBOT soybean futures were called 2-4 cents higher, which was expected to be supportive to the Winnipeg market.
  • The Canadian dollar's strength limited any upside in canola by 5-7 cents.
  • Scale-down exporter demand was expected to remain supportive, with canola looking very cheap to buyers.
  • Feed wheat and western barley were considered overdone to the downside on Friday by 2-4 times their Friday price.

Sources:

  • Source: Winnipeg Commodity Exchange (no date)
  • Source: CBOT (no date)
  • Source: Resource News International (Copyright 2005)

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