Winnipeg Commodity Exchange: Mixed Grain and Oilseed Futures Market

The Winnipeg Commodity Exchange saw mixed trade in grain and oilseed futures on January 4, 2005, with canola and feed grains exhibiting differing trends. Canola values declined due to weakness in the US soy complex, while feed grains like western barley and feed wheat showed strength, albeit in light trade. The market's recovery from early losses was attributed to decent commercial selling and bids coming in to limit losses, amidst snow and cold temperatures in western Canada limiting farmer movement.

Key Takeaways:

Canola futures were pressured by weakness in the US soy complex, leading to losses and new contract lows.
The CBOT soy complex dropped lower on Monday, and the WCE market continued to show weakness on Tuesday, resulting in decent commercial selling.
Bids came in to limit losses, and the market recovered some of its early losses, with about 2,000 contracts traded at mid-session.
The Canadian dollar's weakness provided support to canola values.
Snow and cold temperatures in western Canada limited farmer movement, providing some support to the canola market.
Deliveries against the Jan contract were larger than expected, with Agricore United making the deliveries, mostly taken by ADM Agri-Industries.
Western barley and feed wheat were steady to higher in light trade, driven by strength in the feed complex due to colder temperatures in the Prairie provinces.
Livestock producers increased feed rations in response to the colder temperatures, helping underpin the feed complex.
Losses in CBOT corn limited the upward move for feed grains.

Statistics:

About 2,000 contracts traded at mid-session on the Winnipeg Commodity Exchange.
Deliveries against the Jan contract were 1,000, larger than expected.
Losses in CBOT corn limited the upward move for feed grains.

Sources:

2. COMTEX (http://www.comtexnews.com)