Winnipeg Commodity Exchange Sees Gains in Canola Futures

The Winnipeg Commodity Exchange experienced a significant increase in canola futures trading on October 25, 2004, with the majority of the trade occurring in the canola pit. The gains were largely attributed to the early morning advances in the CBOT soy complex, which triggered commodity fund short covering, driving values higher on technical strength. This movement was further supported by a general lack of hedges and overnight gains in Malaysian palm oil futures. However, the strength in the Canadian dollar limited the advances in canola, with commercials being light participants on the sell side.

Key Takeaways:

• Canola futures at the Winnipeg Commodity Exchange saw significant gains at mid-session, with the majority of the trade occurring in the canola pit.
• The early morning advances in the CBOT soy complex triggered commodity fund short covering, contributing to the increase in canola values.
• A general lack of hedges and overnight gains in Malaysian palm oil futures provided additional support to canola, driving values higher on technical strength.
• Strength in the Canadian dollar limited the advances in canola, but commercials were light participants on the sell side.
• Locals were notable participants on both sides of the market, contributing to the active trading.
• The Nov/Jan spread was a feature in the canola pit, trading at C$5.30 under to C$5.00 under.
• Western barley and feed wheat futures also experienced gains, supported by advances in CBOT corn and wheat futures.
• The Dec/Mar barley spread was a minor feature, trading at C$4.50 under.

Statistics:

• Canola futures rose due to gains in the CBOT soy complex, with traders citing commodity fund short covering as a key factor.
• The Canadian dollar's strength limited advances in canola, according to sources.
• Western barley futures increased by an undisclosed amount with the support of gains in CBOT corn and wheat futures.
• CBOT corn and wheat futures experienced gains, supporting the increases in western barley and feed wheat futures.

Sources:

• Resource News International (Copyright 2004)
• COMTEX (http://www.comtexnews.com)