Winnipeg Commodity Exchange: Mixed Futures with Gains in Feed Complex

Strategic Insights -

The Winnipeg Commodity Exchange (WCE) saw mixed futures in grain and oilseed markets, with gains in the feed complex and a mostly weaker tone in canola. Canola values were mostly lower at midday in commercial and commission house activity. The tightening Nov/Jan spread was a significant feature in the early trade, with commodity funds rolling their positions forward. Cold, snowy weather across the Canadian Prairies, which has caused delays to this year's harvest, helped underpin canola values.

Key Takeaways:

  • Canola values were mostly lower at midday in commercial and commission house activity, with a tightening Nov/Jan spread and commodity funds rolling their positions forward.
  • Cold, snowy weather across most of the Canadian Prairies caused delays to this year's harvest, helping underpin canola values.
  • Gains in nearby CBOT soybean futures provided some support to canola values, while weakness in CBOT soyoil and overnight losses in Malaysian palm oil futures put downward pressure on the market.
  • Continued strength in the Canadian dollar was also somewhat bearish for canola futures.
  • Export sources were unable to confirm any overnight Canadian canola sales.
  • Western barley and feed wheat futures were higher at midsession, supported by short covering and light commercial buying.
  • The advances in Western barley and feed wheat futures were kept in check by losses in the CBOT corn market.

Statistics:

  • Roughly 15% of the crop was still out in the fields, according to traders.
  • The Nov/Jan spread moved at heavy volumes from C$6.00 under to C$5.50 under.
  • CBOT soybean futures gained, providing some support to canola values.
  • CBOT soyoil weakened, along with overnight losses in Malaysian palm oil futures.
  • The Canadian dollar continued to strengthen against other currencies.

Sources:

  • Resource News International
  • Resource News International via COMTEX