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Commodity futures

Winnipeg Commodity Exchange Grain and Oilseed Futures Outlook

Strategic Insights

— 1 min read

Trade activity on the Winnipeg Commodity Exchange (WCE) is expected to begin Monday's session with a firmer tone, driven by weather forecasts and higher CBOT grain and soybean values. The release of new supply/demand balance sheets from the USDA this week may keep trading on the choppy side, while canola futures are seen opening C$2.00 to $3.00 per metric ton higher. Cool overnight temperatures and a large crop estimate, ranging from 7.5 to 8.0 million metric tons, are expected to cap the upside in canola prices.

Key Takeaways:

  • Grain and oilseed futures at the WCE are expected to start Monday's session on a firmer note due to weather forecasts and higher CBOT grain and soybean values.
  • The release of new supply/demand balance sheets from the USDA this week may keep trading activity on the choppy side.
  • Canola futures are seen opening C$2.00 to $3.00 per metric ton higher due to firmer calls for CBOT soybean and soyoil values.
  • Weather outlooks calling for cool overnight temperatures and a vulnerable crop to an early frost are expected to support canola prices.
  • The large crop estimate, ranging from 7.5 to 8.0 million metric tons, is expected to cap the upside in canola prices.
  • Weakness overnight in Malaysian palm oil futures and the absence of domestic crushers from the market are expected to limit the upside price potential.
  • Western barley and feed wheat futures are seen opening unchanged to 80 cents higher in quiet trade, driven by higher CBOT corn futures and slow farmer sales to the country elevator system.

Statistics:

  • Canola futures are expected to open C$2.00 to $3.00 per metric ton higher.
  • CBOT grain and soybean value increases are driving early buying interest.
  • The new supply/demand balance sheets from the USDA are expected to be released this week.
  • The estimated crop size for canola is between 7.5 and 8.0 million metric tons.
  • Weakness overnight in Malaysian palm oil futures is expected to limit the upside price potential.
  • Western barley and feed wheat futures are seen opening unchanged to 80 cents higher.

Sources:

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

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