Winnipeg Commodity Exchange Sees Decline in Grain and Oilseed Futures

The Winnipeg Commodity Exchange experienced a downturn in grain and oilseed futures on Tuesday, with canola setting fresh contract lows due to strong commodity fund selling. The market was also influenced by weak technical signals, steady farmer selling, and sluggish demand. Despite some support from a weak Canadian dollar, the market continued to decline, with commodity funds adding to their short position in January.

Key Takeaways:

• Canola futures dropped sharply, setting fresh contract lows due to strong commodity fund selling.
• The market was affected by weak technical signals, steady farmer selling, and sluggish demand.
• Commodity funds added to their short position in January, with traders estimating their selling at 1,000 contracts, bringing their total short position to an estimated 12,000 contracts.
• Commercials were the biggest buyers in the market, while commercials and commission houses were sellers.
• RBC Investments, Fimat, and Refco were among the notable traders in the market, with Agricore United also selling.
• Feed grain futures posted small losses in light trade, due to the weak tone in CBOT grains and massive supplies of feed wheat in western Canada.
• Barley set a new contract low, while the rest of the market hovered just above contract lows.
• Commercials were the main traders in barley and feed wheat, with traders looking to tomorrow's StatsCan report to confirm massive feed grain supplies in western Canada.

Statistics:

• 1,000 contracts: estimated commodity fund selling in January.
• 12,000 contracts: total short position of commodity funds.
• C$1.50-C$2.00: range of Jan/Mar traded between.
• 1,000 contracts: estimated selling by commodity funds.
• 12,000 contracts: estimated total short position of commodity funds.

Sources:

• Resource News International via COMTEX, Winnipeg, Dec 07, 2004
• COMTEX (http://www.comtexnews.com)