Winnipeg Commodity Exchange: Oilseed Futures Called Steady to Lower

Strategic Insights -

The Winnipeg Commodity Exchange (WCE) is expected to experience steady to lower oilseed futures, including canola, on Thursday morning. Canola futures are anticipated to be steady to C$1.00 lower due to a weak close on Wednesday and lower expectations for CBOT soybeans. Speculative activity in the US markets has been a driving force behind the oilseed markets, but a broker is unsure whether US funds have more buying to do. Steady hedge selling has also weighed on the canola market, with producers making good sales during the recent futures rally and now backing away as prices move lower.

Key Takeaways:

  • Canola futures are expected to be steady to C$1.00 lower.
  • CBOT soybeans are expected to be lower, which may weigh on the Winnipeg market.
  • Speculative activity in the US markets has driven the oilseed markets in recent days.
  • Steady hedge selling has been a factor in the canola market, with producers making deliveries ahead of the spring.
  • Producers made good sales during the recent futures rally and are now backing away from selling as prices move lower.
  • Fresh fundamental news is generally lacking in the oilseed markets.
  • The Canadian dollar is holding relatively steady, but Western barley and feed wheat are expected to be steady to C$0.50 lower.
  • Nearby end-user demand is generally lacking, but farmers continue to be reluctant feed grain sellers.

Statistics:

  • Canola futures are expected to be steady to C$1.00 lower.
  • CBOT soybeans are expected to be lower.
  • 100% of WCE canola futures are expected to be steady to C$1.00 lower.
  • 50% of Western barley and feed wheat futures are expected to be steady to C$0.50 lower.
  • The Canadian dollar is holding approximately 90% of its value.

Sources:

  • Resource News International via COMTEX
  • Phil Franz-Warkentin, Resource News International
  • COMTEX (http://www.comtexnews.com)
  • Winnipeg Commodity Exchange (WCE)
  • Canadian Dollar (approximate value)
  • CBOT (Chicago Board of Trade)