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Commodity futures

Winnipeg Commodity Exchange: Grain and Oilseed Futures Trade Cautiously Ahead of Production Survey Results

Strategic Insights

— 1 min read

Traders in Winnipeg are cautiously waiting for Wednesday's grain and oilseed production survey results from Statistics Canada, leading to a steady to lower trading session at the Winnipeg Commodity Exchange (WCE). Canola futures are experiencing significant losses, partly due to weakness in CBOT soybean and soyoil values. Light elevator company hedge selling and the absence of fresh export demand are contributing to additional losses. However, some light commercial buying and commission house short-covering are providing minor support.

Key Takeaways:

  • Canola futures are trading at lower levels, with new contract lows established in several contracts.
  • Light elevator company hedge selling and the absence of significant fresh export demand are contributing to price weakness.
  • Some light commercial buying and commission house short-covering are providing minor support to prices.
  • The absence of fresh export business was confirmed, with Agricore United and locals being some of the featured sellers.
  • Spreading of the Jan/Mar canola contracts at C$1.60 to $2.00 under was a notable feature of the activity, helping to augment the volume total.
  • Western barley futures were narrowly mixed in very quiet trade, with light commission house short-covering providing some minor support.
  • Feed wheat futures were steady to slightly weaker at midsession in light trade, with light commission house and commercial offerings weighing on prices.

Statistics:

  • Price losses in canola futures were significant, with new contract lows established in several contracts.
  • Light elevator company hedge selling accounted for additional losses, contributing to the price weakness.
  • No fresh export business could be confirmed, with Agricore United and locals being some of the featured sellers.
  • The Jan/Mar canola contracts spread at C$1.60 to $2.00 under was a notable feature of the activity.
  • Western barley futures were narrowly mixed in very quiet trade, with minor support from light commission house short-covering.
  • Feed wheat futures were steady to slightly weaker at midsession in light trade, with light commission house and commercial offerings weighing on prices.

Sources:

  • Resource News International via COMTEX, Dec 07, 2004
  • Statistics Canada (mentioned as the source for Wednesday's grain and oilseed production survey results)
  • COMTEX (http://www.comtexnews.com)

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