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Commodity futures

Winnipeg Commodity Exchange Grain and Oilseed Futures Mixed Amid Expectations of Statistics Canada Planting Report

Strategic Insights

— 1 min read

Canola and other grain futures experienced mixed trading at the Winnipeg Commodity Exchange (WCE) on Tuesday, influenced by a combination of factors including hedge selling, intermonth spreading, and heightened expectations surrounding the upcoming Statistics Canada planting report. The market was marked by steady persistent hedge selling, which weighed on the canola market, while friendly technical signals and buying from Japanese interest, crusher purchasing, and commission house buying provided support. The trading volume was notable, with an estimated 6,768 contracts changing hands, down from Monday's 9,878 contracts.

Key Takeaways:

  • Canola futures ended the session mainly lower due to increased hedge selling, with the July/Nov spread trading at C$8.00 to $9.40 and the Nov/Jan spread trading at $6.50 to $8.00.
  • The market experienced a mixed tone, with canola initially dropping moderately but then coming back to small losses as CBOT soybeans rallied.
  • An estimated 1.5 million acres of all crops remained unplanted in Manitoba due to excess moisture, but this news was felt to be already factored into current market prices.
  • Friendly technical signals, combined with buying from Japanese interest, crusher purchasing, and commission house buying, provided support for the market.
  • The selling came as a result of profit taking and increased country movement, trade sources said.
  • Feed grain futures ended a bit lower in small dull activity, with the weak tone in CBOT corn weighing on the market.
  • Western barley futures were modestly lower in a light commercial trade, with an estimated 211 contracts changing hands, down from 644 contracts on Monday.
  • Feed wheat finished with small losses in light commercial activity, with commercial rolling of positions into the deferred contracts and out of the July contract.

Statistics:

  • According to trade sources, the July/Nov spread traded at C$8.00 to $9.40, while the Nov/Jan spread traded at $6.50 to $8.00.
  • An estimated 3,254 contracts were involved in the spread trade.
  • The total estimated volume at the WCE was 6,768 contracts, down from Monday's 9,878 contracts.
  • Cash bids in Alberta hit $7.00/bu, prompting heavy movement in the canola market.

Sources:

  • Resource News International (http://www.comtexnews.com)
  • Winnipeg Commodity Exchange (WCE)

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