Winnipeg Commodity Exchange Market Summary: May 15, 2006

The Winnipeg Commodity Exchange (WCE) saw a mixed trading session on Monday, May 15, 2006, with canola and other grain and oilseed futures experiencing moderate fluctuations. Despite commercial selling contributing to the market's weakness, a moderate trade in canola futures, particularly in the nearby contracts, showed resilience. The decline in CBOT soy complex futures and concerns about canola being overvalued weighed on prices, while a weak Canadian dollar offered some support. The lack of selling and steady commercial demand helped the nearby canola contracts turn higher at the close.

Key Takeaways:

• Canola futures declined moderately at the open but firmed back to modest gains in the nearby contracts by the close, with a total volume of 6,707 contracts.
• The weak tone in CBOT soyoil and concerns about canola being overvalued contributed to the price decline.
• The weak Canadian dollar was a supportive influence, limiting the impact of the soyoil decline.
• Commodity fund buying was noted, with exporter scale-down buying and crusher pricing evident.
• Commercial sellers were mainly responsible for the trading, with line elevator company and farmer pricing noted.
• Feed grains declined in moderate trade due to a lack of end-user demand and advances in planting.
• Western barley and feed wheat also closed lower, with the latter seeing a significant increase in trading volume.

Statistics:

• 2,064 contracts were involved in the spread trade for canola.
• The total canola volume was estimated at 6,707 contracts, down from 13,819 contracts on Friday.
• Feed wheat saw a total volume of 496 contracts, up from 88 contracts on Friday.
• Western barley traded 751 contracts, up from 668 contracts on Friday.
• The nearby canola contracts turned higher at the close on the absence of selling and steady commercial demand.

Sources:

• Dow Jones Commodities News via Comtex
• Winnipeg Commodity Exchange (WCE)
• Chicago Board of Trade (CBOT)