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Winnipeg Commodity Exchange Grains and Oilseed Futures to Begin Defensive Session

Strategic Insights

— 1 min read

Grain and oilseed futures at the Winnipeg Commodity Exchange (WCE) are expected to start Tuesday's session on a defensive note due to favorable weather conditions for crops across Western Canada over the long holiday weekend, according to floor sources. Canola futures are seen opening C$1.00 to $2.00 per metric ton lower in reaction to the losses posted in CBOT soybeans Monday when the WCE was closed. The strength in the Canadian dollar and the absence of fresh domestic crusher demand are also expected to stimulate early selling interest.

Key Takeaways:

  • Canola futures are expected to open C$1.00 to $2.00 per metric ton lower due to losses in CBOT soybeans and favorable weather conditions for crops.
  • The strength in the Canadian dollar and the absence of fresh domestic crusher demand are expected to stimulate early selling interest in canola futures.
  • Western barley and feed wheat futures are seen opening 50 cents on either side of unchanged.
  • The Canadian Wheat Board's initial payment announcement for the 2004-05 (Aug-Jly) for wheat and barley is expected to lend psychological support to the market.
  • Oversold price sentiment and steady to slightly firmer calls for CBOT corn futures may generate some minor support.
  • The news that the barley harvest was underway in southern Alberta is seen as bearish due to new supplies hitting the cash market.
  • Fresh export demand for canola is expected to be triggered by low enough price levels.
  • Traders believe canola values have reached a point that will attract fresh export demand.

Statistics:

  • Canola futures are expected to open C$1.00 to $2.00 per metric ton lower.
  • The Canadian dollar is expected to be strong, leading to early selling interest.
  • Western barley and feed wheat futures are expected to be unchanged and open 50 cents either side of unchanged.
  • The Canadian Wheat Board's initial payment announcement for the 2004-05 (Aug-Jly) for wheat and barley is expected to be firmer.
  • Oversold price sentiment is expected to limit price slide.

Sources:

  • Resource News International via COMTEX
  • Winnipeg Commodity Exchange (WCE) floor sources
  • Canadian Wheat Board initial payment announcement for the 2004-05 (Aug-Jly) for wheat and barley.

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