Winnipeg Commodity Exchange: Grain and Oilseed Futures Trade in Choppy Activity

Strategic Insights -

The Winnipeg Commodity Exchange (WCE) saw steady to lower levels in grain and oilseed futures trading on September 8, 2005, amidst choppy activity. The decline in CBOT corn and soybean futures, along with a stronger Canadian dollar, contributed to the selling pressure. Market participants were cautious ahead of the weekend and Monday's supply/demand balance sheets from the USDA. The advancing canola harvest in Western Canada added to the downward pressure on prices, despite good levels of exporter pricing.

Key Takeaways:

  • Grain and oilseed futures at the WCE traded at steady to lower levels, with declines in CBOT corn and soybean futures contributing to the selling pressure.
  • A stronger Canadian dollar was also seen as an undermining price influence, trade sources said.
  • Market participants were cautious ahead of the weekend and Monday's supply/demand balance sheets from the USDA.
  • The advancing canola harvest in Western Canada contributed to the downward price action, despite good levels of exporter pricing.
  • Traders said that conditions were still more than adequate for the canola harvest, keeping downward pressure on the commodity.
  • Exceptional scale down buying of canola was seen, suggesting additional business may have been put on the books.
  • Exporters were unable to confirm any fresh sales of Canadian canola, suggesting ongoing pricing was for old-business.
  • Western barley futures were steady to lower, with losses in CBOT corn accounting for much of the downward price action.
  • Feed wheat values were little changed in choppy activity, with concerns about tight feed supplies providing a firm price floor.
  • End-users were reportedly short-bought feed wheat, helping to maintain its price.

Statistics:

  • 1,848 canola contracts had changed hands at midsession.
  • 177 Nov/Jan contracts had been spread at C$8.20 to C$8.60 under.
  • An estimated 18 feed wheat contracts had changed hands at midsession.
  • 115 western barley contracts had traded at midsession.

Sources:

  • Resource News International via COMTEX