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Commodity futures

Winnipeg Commodity Exchange Grain and Oilseed Futures Market Update: April 12, 2005

Strategic Insights

— 1 min read

As the weak Canadian dollar and firm Chicago Board of Trade soyoil futures lifted prices, canola futures at the Winnipeg Commodity Exchange (WCE) rallied on the back of moderate trading volumes. The slow pace of farmer selling, as they prepare for planting, contributed to the gains in canola. The main feature of the trade was the spread activity, with over 2,400 contracts involved in the May/July spread. Trading volumes were estimated at 3,455 contracts as of 11:00 CT.

Key Takeaways:

  • Canola futures at the WCE rallied on the weakness of the Canadian dollar and firm Chicago Board of Trade soyoil futures, with a modest increase in moderate trade.
  • The slow pace of farmer selling, as they prepare for planting, contributed to the gains in canola.
  • The main feature of the trade was the spread activity, with over 2,400 contracts involved in the May/July spread.
  • Total trading volumes were estimated at 3,455 contracts as of 11:00 CT.
  • The spread activity between May and July canola futures was traded at $4.50 to $4.90, while the May/Nov spread was traded at $11.50 to $11.90.
  • Feed grains were narrowly mixed, with feed wheat lower and western barley modestly higher in light activity.
  • Routine exporter pricing and steady crusher demand met commercial long liquidation, analysts said.
  • The market was under pressure from the lack of demand, with end users feeling covered into the early part of the summer, brokers said.
  • Don Bousquet, Resource News International, reported on the market activity.

Statistics:

  • Canola futures rallied on the back of moderate trading volumes, with a small gain of unknown amount.
  • Over 2,400 contracts were involved in the May/July spread, with prices ranging from $4.50 to $4.90.
  • Total trading volumes were estimated at 3,455 contracts as of 11:00 CT.
  • Feed wheat trade was estimated at 270 contracts, while western barley volumes were estimated at 135 contracts.
  • The Canadian dollar hit its lowest level of the month due to a patronage scandal threatening the ruling minority Liberal party government.

Sources:

  • Resource News International via COMTEX (http://www.comtexnews.com), April 12, 2005

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