Winnipeg Commodity Exchange Sees Higher Grain and Oilseed Futures

The Winnipeg Commodity Exchange experienced higher grain and oilseed futures on Monday, influenced by the weather-induced rally in Chicago Board of Trade futures. Traders looked ahead to Thursday's Statistics Canada planting report, despite expectations that it wouldn't accurately reflect the reality of planting delays in Manitoba. Canola futures reached their highest level since September 2004 in moderately active trade.

Key Takeaways:

• Canola futures increased in moderately active trade, reaching their highest level since September 2004.
• Intermonth spread activity accounted for much of the day's volume, with the July/Nov spread trading at C$8.80 to $9.80 and the Nov/Jan spread trading at $7.00 to $7.90.
• Commodity funds added to their long position in the Nov contract, with most sources indicating that the funds are long between 2,000 and 3,000 contracts.
• Farmer selling has remained strong through the rally, but producers are reportedly "more disciplined" in their selling, waiting for market prices to reach levels they are willing to sell at.
• Cash bids for canola range from $6.50 to $7.00 per bushel, with forward contract bids over $7.00/bu in some areas of western Canada.

Statistics:

• Canola futures traded at their highest level since September 2004.
• The July/Nov spread traded at C$8.80 to $9.80, while the Nov/Jan spread traded at $7.00 to $7.90.
• Commodity funds are long between 2,000 and 3,000 contracts in the Nov contract.
• Farmer selling has remained strong through the rally, with cash bids ranging from $6.50 to $7.00 per bushel.
• Forward contract bids are over $7.00/bu in some areas of western Canada.

Sources:

• Resource News International via COMTEX
• Don Bousquet, Resource News International News Provided by COMTEX (http://www.comtexnews.com)
• Winnipeg Commodity Exchange (WCE)
• Chicago Board of Trade (CBOT)
• Statistics Canada
• COMTEX (http://www.comtexnews.com)