Winnipeg Commodity Exchange: Grain and Oilseed Futures End Near Unchanged

Strategic Insights -

The Winnipeg Commodity Exchange saw grain and oilseed futures trading near unchanged on Thursday, with a higher tone in canola driven by the lack of farmer selling and tightness in the cash markets. Brokers reported moderate activity, with commercials accounting for most of the trading. The cash market was supported by the weak Canadian dollar and the firm tone in Chicago Board of Trade soy complex futures.

Key Takeaways:

  • Canola futures posted gains in light trade due to persistent talk that Pakistan has been in the market, as well as the support from the firm tone in Chicago Board of Trade soy complex futures and the weak Canadian dollar.
  • Tightness in the cash markets, resulting from virtually non-existent farmer selling, provided a significant support to the market.
  • Cash bids for canola reached $6.00 per bushel, and cash traders indicated that they have cleaned out all willing country selling at those levels.
  • Feed grain futures ended narrowly mixed in very small activity, due to feed lot operators having largely got their needs covered through Feb.
  • Western barley futures firmed a bit in the small commercial trade, with buyers sitting at $113.00 to $113.50 per metric ton and sellers, thought to be hedgers, sitting at $115.00.
  • Feed wheat prices were about unchanged in very small volumes, with commercials being the only willing traders.
  • The lack of volume in feed grain and oilseed futures can be attributed to feed lot operators having their needs covered through Feb, leaving small buy or sell orders to move the market.

Statistics:

  • 2,913 contracts traded in canola on Thursday, down from 3,311 contracts on Wednesday.
  • Cash bids for canola reached $6.00 per bushel.
  • Feed wheat trade was estimated at 103 contracts, down from 162 contracts on Wednesday.
  • Line of business included moderate trade, particularly in canola.
  • Traded numbers included an estimated 278 contracts in barley, up from 239 contracts on Wednesday.

Sources:

  • Resource News International via COMTEX
  • COMTEX (http://www.comtexnews.com)
  • Resource News International News Provided by COMTEX