Winnipeg Commodity Exchange: Mixed Trading in Grain and Oilseed Futures

The Winnipeg Commodity Exchange (WCE) saw mixed trading in grain and oilseed futures on October 22, 2004, with canola trading on both sides of unchanged and a firmer tone in the feed grains. The strong Canadian dollar continued to put downward pressure on canola values, while a generally weaker tone in CBOT soybeans contributed to early losses in the canola pit. However, the soy complex turned higher, providing support to canola, and spreading was the feature in the canola pit with participants rolling out of the nearby contract.

Key Takeaways:

Canola values were mixed at midsession, with gains in the nearby Nov contract and losses in the more deferred months.
Commercial selling pressured the market early, and the strong Canadian dollar continued to put downward pressure on canola values.
The soy complex turned higher, providing some support to canola, and spreading was the feature in the canola pit.
Local short covering helped limit the declines in canola, and light end-user pricing was also supportive.
Western barley futures were up at midday, met by a lack of farmer selling and light trade.
Feed wheat futures were slightly higher at midsession, with commission house buying met by commercial selling.
A lack of hedges provided some support to feed wheat values, but large supplies continue to overhang the market.

Statistics:

Sales of 7,000 metric tons of Canadian canola to Japan on the spot cash market confirmed overnight.
The Nov/Jan canola spread traded between C$5.20 under to C$4.70 under.
The Dec/Mar feed wheat spread traded at C$5.50 under.
Trade was light in western barley futures, with losses in CBOT corn keeping gains in check.
Export sales of Canadian canola favorably impacted canola values.

Sources:

Resource News International via COMTEX
Winnipeg Commodity Exchange (WCE)
Copyright 2004 Resource News International News Provided by COMTEX (http://www.comtexnews.com)