Winnipeg Commodity Exchange: Grain and Oilseed Futures to Begin Week on Steady Note

Futures contracts for grain and oilseeds at the Winnipeg Commodity Exchange are expected to start the week on a steady note due to lower calls for CBOT grain and soybean values. Despite gains on Monday, traders anticipate selling on the open to be tempered, with canola futures seen opening steady to down C$1.00 per metric ton. The return of warmer temperatures in Western Canada may lead to increased farmer deliveries to the country elevator system, which could put canola on the defensive. Brokers also note that a softer Canadian dollar and decline in Malaysian palm oil markets overnight may influence early prices.

Key Takeaways:

• Grain and oilseed futures at the Winnipeg Commodity Exchange are expected to start the week on a steady note due to lower calls for CBOT grain and soybean values.
• Canola futures are seen opening steady to down C$1.00 per metric ton due to increased farmer deliveries and bearish technical outlook.
• The return of warmer temperatures in Western Canada may prompt a pick up in farmer deliveries to the country elevator system.
• Declines in Malaysian palm oil markets overnight and the large world oilseed supply situation are seen as bearish price influences for canola.
• A softer Canadian dollar and scale-down buying by commercials are expected to temper losses in canola.
• Projections from Agriculture Canada that seeded area to canola will decline this spring may provide support to deferred contracts.
• Western barley and feed wheat futures are seen opening steady, with a 50 cent downward move not unexpected due to large supply situation.
• The return of warmer temperatures in Western Canada may lead to a drop off in end-user demand.

Statistics:

• Canola futures are expected to open steady to down C$1.00 per metric ton.
• CBOT grain and soybean values are seen as a downward influence at the Winnipeg Commodity Exchange.
• Seeded area to canola forecasted by Agriculture Canada to decline to 12.395 million acres in 2005 from 13.144 million in 2004.

Sources:

• Resource News International, January 18, 2005.
• COMTEX (http://www.comtexnews.com).