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Commodity futures

Winnipeg Commodity Exchange Sees Gains in Canola, Barley, and Oilseed Futures

Strategic Insights

— 1 min read

In a sudden surge, grain and oilseed futures at the Winnipeg Commodity Exchange (WCE) rose in mid-session, driven by strength in CBOT soybean and corn futures. Sources attribute the gains to commercial short covering and speculative commission house demand, as traders point to the extreme strength in the US market. Canola values, in particular, saw sharp gains, driven by increased buying in the CBOT soy complex. However, activity in the oilseed markets remains volatile, pending a clearer understanding of weather forecasts that may impact northern US soybean crops.

Key Takeaways:

  • Canola values rose sharply in response to gains in the CBOT soy complex, driven by commercial short covering and speculative commission house demand.
  • The strength in CBOT soybeans was largely tied to concerns about frost hitting the northern US soybean crops next week.
  • A Winnipeg trader noted that actual forecasts are conflicting, leading to volatile activity in the oilseed markets.
  • Commercial selling, brought on by farmer hedges, helped keep the advances in check in the canola market.
  • Export sources were unable to confirm any overnight Canadian canola sales to Japan.
  • Barley values were up due to strength in CBOT corn and wheat futures, with commission house trade contributing to the gains.
  • Feed wheat futures were bid higher by commission houses, but remained untraded at midsession.
  • Trade participants, particularly commercials, remain cautious, thinking that there is a big feed grain crop and thus are not worried about securing supplies.

Statistics:

  • Canola values rose sharply in the Winnipeg market, citing gains in the CBOT soy complex.
  • Commercial short covering and speculative commission house demand accounted for most of the buying in the Winnipeg market.
  • Barley values were up, driven by strength in CBOT corn and wheat futures, with sides of commission house trade.
  • Activity in the feed pit was quite scarce, with commercials keeping to the sidelines.
  • Feed wheat futures were bid higher by commission houses but remained untraded at midsession.
  • The strength in CBOT corn and wheat futures was attributed to a surplus of feed grain crops.

Sources:

  • Resource News International via COMTEX
  • Winnipeg Commodity Exchange (WCE)
  • CBOT (Chicago Board of Trade)
  • CBOT soy complex
  • Phil Franz-Warkentin, Resource News International
  • Winnipeg, MB, Aug 30, 2004 (Resource News International via COMTEX)

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