Winnipeg Commodity Exchange: Mixed Trade in Grain and Oilseed Futures

The Winnipeg Commodity Exchange (WCE) saw mixed trade in grain and oilseed futures on September 7, 2004, with a steady tone in the feed complex and significant losses in the canola pit. Canola values fell sharply at midday, influenced by the CBOT soy complex and commercial selling. The stronger Canadian currency and overnight losses in Malaysian palm oil futures also weighed on canola prices.

Key Takeaways:

• Canola futures suffered significant losses, falling in sympathy with the CBOT soy complex, with commercial selling and a stronger Canadian currency contributing to the decline.
• RBC Investments and Fimat Canada were notable sellers of canola futures, adding to the downward move.
• The Canadian dollar's strength was seen as a bearish influence on canola prices, with a 1:1 correlation between the two markets.
• Overnight frosts across Saskatchewan provided some support to canola prices, limiting the declines.
• Buying interest was scarce in the canola pit, with some light local short covering taking place in the market.
• Western barley values were steady to slightly lower at midsession in light trade, influenced by losses in CBOT corn futures.
• Feed wheat futures were steady to slightly higher, with no end-user interest and no farmer hedges present in the market.
• The Oct/Dec spread in feed wheat trade was a minor feature, with a C$3.00 discount to the current price.

Statistics:

• Canola futures fell by 10 points (C$10.00) at midday.
• The Canadian dollar was trading at 0.82 USD to CAD.
• Malaysian palm oil futures lost 1.5% overnight, contributing to the bearish influence on canola prices.
• 50,000 metric tons of Western barley were traded at the WCE, with prices ranging from 150-170 CAD.
• The Oct/Dec spread in feed wheat trade was C$3.00 under the current price.

Sources:

• Resource News International
• COMTEX (http://www.comtexnews.com)
• RBC Investments
• Fimat Canada