Winnipeg Commodity Exchange Grain and Oilseed Futures Weaken Due to Poor Demand and Warmer Weather Outlooks

Canadian grain and oilseed futures on the Winnipeg Commodity Exchange (WCE) traded lower at mid-session due to poor demand, steady commercial selling, and an increase in visible canola supplies. The weakness was triggered by declines in CBOT grain and soybean values, as well as losses in soybean and soyoil values. Weather outlooks calling for warmer temperatures in Western Canada by mid-week sparked further selling, but were offset by longer-range weather forecasts predicting a return of cold temperatures.

Key Takeaways:

• Canola futures were lower at mid-session due to steady commercial selling, triggered by losses in CBOT soybean and soyoil values.
• Poor demand from the export sector, combined with an increase in visible canola supplies, contributed to the downward price slide.
• Weather outlooks calling for warmer temperatures in Western Canada by mid-week sparked further selling, but were offset by longer-range weather forecasts predicting a return of cold temperatures.
• The absence of fresh demand from domestic processors added to the bearish price sentiment in canola.
• Export sources confirmed that Canada sold 20,000 metric tons of canola to Japan on the spot cash market.

Statistics:

• 1,744 canola contracts changed hands at mid-session.
• Western barley futures were lower, with an estimated 128 contracts traded.
• Feed wheat futures were on the defensive at mid-session, with 67 contracts traded.
• CBOT grain and soybean values declined, contributing to the weakness in Canadian grain and oilseed futures.

Sources:

• Resource News International via COMTEX
• Canadian Grain Commission
• Dwayne Klassen, Resource News International
• COMTEX (http://www.comtexnews.com)