Winnipeg Commodity Exchange Sees Early Strength in Grain and Oilseed Futures

The Winnipeg Commodity Exchange is expected to see early strength in grain and oilseed futures on Tuesday, as the market recovers from Tuesday's losses. Canola futures are predicted to rise by C$2.00 to C$5.00, following gains in CBOT soybeans that traded higher in overnight electronic activity. Market participants are cautious, anticipating potential volatility and questioning whether commodity funds will return with additional selling.

Key Takeaways:

• Canola futures are expected to open C$2.00 to C$5.00 higher, driven by gains in CBOT soybeans.
• Feed wheat and western barley are called C$0.50 to C$1.00 higher at the open, anticipating the expected gains in corn.
• Fundamental support in the canola market has been weak in recent sessions, with only scale-down commercial short covering noted by traders.
• Commodity funds were noted sellers on Tuesday, and it is uncertain whether they will continue to sell.
• A trader commented that the funds' selling has been inconsistent, with a recent pattern of not following through on their initial intentions.
• The feed complex is expected to follow the gains in corn, contributing to the market's surge.
• The spread trade is expected to be a feature in barley activity, as participants roll their positions out of the May contract.

Statistics:

• C$2.00 to C$5.00: the predicted increase in canola futures.
• C$0.50 to C$1.00: the predicted increase in feed wheat and western barley.
• CBOT soybeans: the market that fueled the gains in canola futures.
• Tuesday's losses: the market's decline that the Winnipeg Commodity Exchange is recovering from.

Sources:

• Resource News International
• COMTEX (http://www.comtexnews.com)