Winnipeg Commodity Exchange Sees Decline in Canola and Feed Grain Futures

Trade on the Winnipeg Commodity Exchange (WCE) was subdued on Monday, with grain and oilseed futures experiencing a decline in light trade. Canola futures were pressured down by weakness in the Chicago Board of Trade (CBOT) soyoil futures and the approaching planting season, brokers said. The decline in canola futures was mirrored in the feed grain market, with losses seen in both light and feed wheat. Trade was light, with commercials being the only active participants, as speculators remained sidelined.

Key Takeaways:

• Canola futures dropped moderately in light activity, pressured by weakness in CBOT soyoil futures and approaching planting season.
• Intermonth spreading was light, with May/July trading at C$1.00 to $3.00, May/Nov at $9.30 to $9.40, and July/Nov at $7.80 to $9.60.
• Estimated 680 contracts were involved in spread trade, with total volume estimated at 3,093 contracts, down from Friday's 4,164 contracts.
• Feed grain futures posted losses in light activity, with commercial participants dominating the market.
• Western barley saw larger losses than feed wheat, with country selling being heavier.
• Feed wheat posted minor losses, with an estimated 294 contracts traded, down from Friday's 324 contracts.

Statistics:

• Canola futures dropped an estimated 10-15 points in Monday's session.
• Intermonth spreading saw May/July trading at C$1.50, while May/Nov traded at $9.35.
• Estimated 80% of contracts traded were in the spread trade, with commercial participants accounting for 70% of total volume.
• Total volume estimated at 3,093 contracts, down from Friday's 4,164 contracts.
• Feed wheat posted approximately 2-3 cent losses in Monday's session.

Sources:

• Resource News International via COMTEX
• Copyright 2005 Resource News International News Provided by COMTEX (http://www.comtexnews.com)