Winnipeg Commodity Exchange Grain and Oilseed Futures Close Mostly Lower

Strategic Insights -

The Winnipeg Commodity Exchange (WCE) witnessed a mostly lower finish for grain and oilseed futures on Thursday, September 23, 2004. Canola futures dropped to their lowest level in two years, while commodity funds sold small amounts of canola, adding to their short position. On the other hand, flaxseed futures rallied due to a firm tone in the cash markets and weather-related crop damage.

Key Takeaways:

  • Canola futures plummeted to their lowest level in two years, with analysts attributing the decline to the strong Canadian dollar, weak demand, and bearish technical sellers.
  • Commodity funds sold small amounts of canola, adding to their short position, contributing to the weakness in prices.
  • Flaxseed futures rallied in no activity due to the firm tone in the cash markets and weather-related crop damage.
  • Feed grains ended mixed, with western barley lower and feed wheat higher, influenced by factors such as weakness in CBOT corn, increased harvesting, and slow demand.
  • Commissions houses were involved in short covering, particularly in the feed wheat market, driven by the notion that the market was oversold and due for a rally.
  • The Canadian dollar's value and export demand played significant roles in determining prices for various commodities at the WCE.

Statistics:

  • Canola futures dropped to their lowest level in two years.
  • Commodity funds sold small amounts of canola, adding to their short position.
  • Flaxseed futures rallied in no activity due to the firm tone in the cash markets.
  • Feed grains ended mixed, with western barley lower and feed wheat higher.
  • Western barley dropped to fresh contract lows due to weakness in CBOT corn and increased harvesting.
  • Feed wheat rallied in light trade, with commissions houses engaging in short covering.

Sources:

  • Resource News International via COMTEX "Grain and oilseed futures at the Winnipeg Commodity Exchange (WCE) finished Thursday's session mostly lower..." (Resource News International, Sep 23, 2004)
  • COMTEX (http://www.comtexnews.com) "Winnipeg, Sep 23, 2004"