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Commodity futures

Winnipeg Commodity Exchange Grain and Oilseed Futures Activity

Strategic Insights

— 1 min read

Activity on the Winnipeg Commodity Exchange's grain and oilseed futures market was notable on Monday, with most contracts finishing the session higher in light pre-US holiday trading, according to market watchers. The canola market received a boost from earlier gains in CBOT soybeans, but ultimately came under pressure from commercial hedges and unfavorable exchange rates. Meanwhile, western barley futures traded unchanged, and feed wheat values rose on expectations of a looming duty on US corn imports.

Key Takeaways:

  • Canola futures prices increased early in the day due to gains in CBOT soybeans, but were later pressured by commercial hedges and favorable weather conditions that led to farmer deliveries, resulting in a net decrease in prices.
  • The canola market witnessed only light demand, with an estimated 4,693 contracts traded, down from 6,575 contracts on Friday.
  • Spreading activity accounted for approximately 440 of the contracts traded, with the Jan/Mar spread trading at C$7.00 to C$7.70, and the July/Nov spread trading at C$14.80.
  • Western barley futures closed unchanged, with an estimated 138 contracts traded, up from 108 contracts on Friday.
  • Feed wheat values rose in two-sided commercial trade, with an estimated 247 contracts traded, down from 604 contracts on Friday, due to expectations of a duty on US corn imports.
  • The strong Canadian dollar and adverse weather conditions weighed on crush margins, leading to a C$2.00 per ton deterioration in crush margins.

Statistics:

  • Total canola contracts traded: 4,693
  • Total barley contracts traded: 138
  • Total feed wheat contracts traded: 247
  • Total contracts traded on Friday: 6,575 (canola) and 108 (barley)
  • Crush margins deterioration: C$2.00 per ton
  • Strong Canadian dollar: weighed on commodity prices and crush margins
  • Estimated contracts traded for spreading activity: 440

Sources:

  • Resource News International Winnipeg, MB, Nov 21, 2005 (Resource News International via COMTEX)
  • Various traders and market watchers cited in the article as sources of information.

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