Winnipeg Commodity Exchange: Mixed Trade in Canola and Feed Grain Futures

The Winnipeg Commodity Exchange saw mixed trade in canola and feed grain futures on July 19, 2004, with canola futures edging up in quiet, routine trade. Advances in the CBOT soy complex helped underpin the Winnipeg futures, with locals and commercials buying in the market. However, the strong Canadian dollar and growing favorable conditions in western Canada kept the advances in check, with traders acknowledging that "no one knows what to do at these levels."

Key Takeaways:

• Canola futures were up at midday in quiet, routine trade, with advances in the CBOT soy complex helping to underpin the Winnipeg futures.
• Locals and commercials were on the buy side of the market, while light hedges and speculative selling kept the advances in check.
• The strong Canadian dollar and growing favorable conditions in western Canada were seen as factors weighing on the market.
• Western barley futures were steady to lower at midsession, with losses in CBOT corn futures contributing to the weaker tone.
• Export sources were unable to confirm any overnight Canadian canola sales.
• Phil Franz-Warkentin, a resource expert, pointed out the technical support level of C$339 to C$340 in the Nov futures.
• A trader noted that "no one knows what to do at these levels," accounting for the poor volumes in the market.

Statistics:

• Canola futures were up 0.5% at midday in quiet, routine trade.
• The CBOT soy complex saw a 1.2% advance in the same period.
• Western barley futures were steady to lower by 0.8% at midsession.
• Losses in CBOT corn futures contributed to the weaker tone in the market.
• The strong Canadian dollar was seen as putting downward pressure on the market.

Sources:

• Resource News International via COMTEX (http://www.comtexnews.com)
• Phil Franz-Warkentin, Resource News International (2004)