Winnipeg Commodity Exchange: Grain and Oilseed Futures Trade Amidst Global Market Trends

Grain and oilseed futures at the Winnipeg Commodity Exchange (WCE) continued to trade at mainly higher levels at midsession, driven by advances in CBOT grain and soybean values. Canadian dollar strength, however, limited upward price momentum. Canola futures were trading at a higher level in light to moderate activity, fueled by commercial and commission house buying, as well as overnight gains in Malaysian palm oil futures.

Key Takeaways:

• CBOT grain and soybean values contributed to the upward price action in WCE grain and oilseed futures.
• A strong Canadian dollar limited the upward price momentum in WCE futures.
• Canola futures traded at a higher level in light to moderate activity, driven by commercial and commission house buying.
• Overnight gains in Malaysian palm oil futures contributed to the upward price action in canola.
• Scale-up selling by commercials limited the upside in canola.
• The market is still digesting Friday's canola production estimate from Statistics Canada, which pegged the country's 2005/06 crop at 8.325 million metric tons.

Statistics:

• At midsession, an estimated 3,195 canola contracts changed hands.
• The November/January contracts traded at C$8.50 to C$8.70 under.
• An estimated 122 western barley contracts had traded at midsession.
• 46 feed wheat contracts had changed hands at midsession.

Sources:

• Resource News International, Aug 29, 2005
• COMTEX, Aug 29, 2005
• Statistics Canada, 2005/06 canola production estimate