Winnipeg Commodity Exchange Futures Decline Amid Hedge Pressure

Market participants at the Winnipeg Commodity Exchange (WCE) were largely selling into the weakening tone in the CBOT soy complex, with canola futures leading the way downward. Commercial and hedge-related selling, as well as small speculator selling, weighed on the market. However, scale-down commercial demand, including Japanese buying, limited the losses in canola, and the latest Alberta crop report showed the canola harvest only 50% complete as of October 13.

Key Takeaways:

• Grain and oilseed futures at the WCE were mainly lower at midsession Tuesday due to hedge pressure.
• Canola futures were down, taking their cue from the weaker tone in the CBOT soy complex.
• Commercial and hedge related selling weighed on the Winnipeg futures, with small speculators also selling.
• Scale-down commercial demand, including Japanese buying, limited the losses in canola.
• The Nov/Jan canola spread traded between C$10.10 and C$10.80 under, as participants rolled out of the nearby contract.
• About 4,400 canola contracts had traded by midday, with losses in CBOT corn futures also putting downward pressure on feed grains.
• Feed wheat and western barley futures were steady to lower in light, two-sided commercial trade.

Statistics:

• 4,400 canola contracts traded by midday.
• The Nov/Jan canola spread traded between C$10.10 and C$10.80 under.
• 50 feed wheat contracts and 120 barley contracts traded by midday.

Sources:

• Resource News International, Winnipeg, MB, Oct 18, 2005 (Resource News International via COMTEX)
• Winnipeg Commodity Exchange (WCE) market data and reports.