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Commodity futures

Winnipeg Commodity Exchange Market Report: September 14, 2004

Strategic Insights

— 1 min read

The Winnipeg Commodity Exchange (WCE) saw a relatively quiet session on Tuesday, September 14, 2004, with grain and oilseed futures experiencing mixed results. Canola futures showed little change throughout most of the session, while barley and canola futures saw small gains. On the other hand, feed wheat futures saw small losses. The delayed harvest due to cool and wet weather conditions balanced off the lack of demand, with floor sources indicating that farmer selling was light and spotty.

Key Takeaways:

  • Canola futures were little changed for most of the session, with a modest rally in the last 30 seconds of trade, resulting in a small gain of $10.00 in the Nov 04/Nov 05 spread.
  • The lack of demand was balanced off by the lack of farmer selling, with floor sources indicating that farmer selling was light and spotty due to the delayed harvest.
  • Feed grains ended narrowly mixed in light activity, with the delayed harvest and ideas of the market being oversold providing support.
  • Western barley edged up marginally as commission house short covering met commission house selling with commercials largely sidelined, with small activity in Oct/Dec spreads at $2.50.
  • Feed wheat was lower in light trade as commission house and commercial buying met commercial selling, with the Oct/Dec spread trading at $4.00, $3.00, and $3.50.
  • Ideas that as much as 40% of the Western Canadian wheat crop has suffered from reduced quality ratings due to inclement weather during the growing season maintained selling pressure on the market.

Statistics:

  • Canola futures saw a small gain of $10.00 in the Nov 04/Nov 05 spread.
  • Farmer selling was light and spotty, accounting for only a small percentage of overall trading activity.
  • The largest trade of the day was the sale of 5,000 to 6,000 metric tons of canola to Japan overnight.
  • Canola options saw small trade in Nov 340, 350, 360, 370, and 400 calls, as well as Jan 350 and 370 calls.
  • Feed grains ended narrowly mixed, with small gains in barley and losses in feed wheat.

Sources:

  • Resource News International via COMTEX, dated September 14, 2004.
  • Resource News International, Copyright 2004, Resource News International News Provided by COMTEX (http://www.comtexnews.com).

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