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Winnipeg Commodity Exchange Grain and Oilseed Futures Post Steady to Higher Levels

Strategic Insights

— 1 min read

Winnipeg Commodity Exchange grain and oilseed futures were trading at steady to higher levels mid-session, driven by a combination of factors. The Canadian dollar's weakness and advances in Chicago Board of Trade (CBOT) grain and soybean values contributed to the strength. Canola futures were particularly resilient, with good commission house and commercial demand, as well as short-covering, driving prices up. Gains in CBOT soybean and soyoil futures, as well as Malaysian palm oil, also supported the canola market. However, light elevator company hedging and concerns about Japanese importers backing away from the Canadian canola market due to recent price strength capped the upside.

Key Takeaways:

  • Canola futures were trading at higher levels due to good commission house and commercial demand, as well as short-covering.
  • Strength in CBOT soybean and soyoil futures contributed to the canola market's resilience.
  • Gains in Malaysian palm oil futures also supported the canola market.
  • Technically based buying, particularly with the January future moving past technical resistance at C$280.00 per metric ton, further underpinned values.
  • Light elevator company hedging, as well as concerns about Japanese importers backing away from the Canadian canola market, capped the upside in canola.
  • Western barley futures were mainly higher due to commission house short-covering spurred by gains in CBOT corn futures.
  • Feed alternatives in Western Canada tempered the advances in barley.
  • Feed wheat values moved up due to light commission house buying, mostly linked to short-covering.

Statistics:

  • Canola futures were trading at higher levels, with strength associated with good commission house and commercial demand.
  • CBOT soybean futures gained, contributing to the canola market's strength.
  • Malaysian palm oil futures also gained, supporting the canola market.
  • Western barley futures were mainly higher, with commission house short-covering driving prices up.
  • Feed wheat values moved up due to light commission house buying, mostly linked to short-covering.
  • Technical resistance at C$280.00 per metric ton was overcome, further underpinning canola values.
  • Spreading of the Jan/Mar contracts at C$1.40 and $1.30 under contributed to the volume total.

Sources:

  • Resource News International via COMTEX. WINNIPEG, MB, Dec 13, 2004.

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