Winnipeg Commodity Exchange Futures Decline Amid Favorable Weather and Export Demand

Grain and oilseed futures at the Winnipeg Commodity Exchange (WCE) retreated from Monday's advances, with canola futures down at midday in two-sided commercial trade. Producers with a record large canola crop are expected to make sales anytime the market sees a small boost, according to a broker. Favorable weather conditions in western Canada have allowed farmers to generate some Christmas money, but exporter and domestic crusher demand has limited the losses in canola. End-users continue to provide a firm floor for prices, but are only buying on a scale-down basis, waiting for the market to come to them.

Key Takeaways:

• Winnipeg Commodity Exchange (WCE) grain and oilseed futures declined due to favorable weather conditions and exporter demand.
• Canola futures were down at midday in two-sided commercial trade, with producers expected to make sales anytime the market sees a small boost.
• Exporter and domestic crusher demand limited the losses in canola, with end-users providing a firm floor for prices.
• Farmers in western Canada were able to generate Christmas money due to favorable weather conditions, leading to increased sales.
• Roughly 5,000 canola contracts had traded by midsession.
• Western barley and feed wheat futures were steady to lower in light two-sided commercial trade, with about 60 feed wheat and 180 western barley contracts traded by midday.
• Exporter demand, favorable weather, and end-user buying limited the decline in canola futures.

Statistics:

• Roughly 5,000 canola contracts traded by midsession.
• About 60 feed wheat contracts and 180 western barley contracts traded by midday.
• Canola futures were down at midday in two-sided commercial trade.

Sources:

• Resource News International Winnipeg, MB, Dec 13, 2005