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Commodity futures

Winnipeg Commodity Exchange: Grain and Oilseed Futures to End 2004 on a Steady Note

Strategic Insights

— 1 min read

Grain and oilseed futures at the Winnipeg Commodity Exchange (WCE) were expected to start the last day of trading in 2004 on a steady to slightly weaker note due to the closure of the Chicago Board of Trade (CBOT) markets, which were closed ahead of the New Year's holiday. The WCE was also expected to experience lighter activity as many traders and market participants took a break for the holidays. Notably, canola futures were seen opening steady to possibly down as much as C$1.00 per metric ton on the open, due to strength in the Canadian dollar and farmer basis pricing.

Key Takeaways:

  • Canola futures were expected to open steady to possibly down as much as C$1.00 per metric ton on the open due to strength in the Canadian dollar and farmer basis pricing.
  • Softening export basis levels were seen adding to the downward price momentum in canola futures.
  • Bearish technical signals were expected to encourage some minor selling interest in canola futures.
  • The decline in canola futures was expected to be offset in part by scale-down exporter pricing.
  • Western barley and feed wheat futures were seen opening steady to 40 cents on either side of unchanged in quiet holiday activity.
  • The reopening of the U.S. border to Canadian cattle under 30 months of age in March was seen as a potential catalyst for increased cattle on feed and upward momentum in the market.
  • However, other market watchers felt that an open border could result in a flush of Canadian cattle into the U.S. market and result in fewer mouths to feed in Western Canada.

Statistics:

  • Canola futures were expected to open down as much as C$1.00 per metric ton.
  • Western barley and feed wheat futures were expected to open within 40 cents of unchanged from the previous close.
  • The U.S. border was set to reopen to Canadian cattle under 30 months of age in March.
  • The market was expecting a quieter day than the previous Friday, with lighter activity and fewer market participants.

Sources:

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

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