Winnipeg Commodity Exchange Sees Mixed Close in Grain and Oilseed Futures

Strategic Insights -

The Winnipeg Commodity Exchange (WCE) saw a mixed close in grain and oilseed futures on Tuesday, with canola futures experiencing small losses for most of the session. However, a last-minute surge in speculator buying lifted the nearby contracts, resulting in small gains. The Canadian dollar's move above US$0.80 slowed export demand, contributing to a bearish tone in the market.

Key Takeaways:

  • Canola futures saw small losses for most of the session in fairly active trade, with the Nov/Jan spread trading from C$5.00 to $5.40.
  • The Nov/Mar spread also attracted good interest at $9.40, $10.00, $10.40, and $11.00, with Mar/Nov spreads trading at $4.50 and Jan/Mar at $5.00.
  • Country movement increased due to yesterday's rally, resulting in cash bids in Saskatchewan hitting $6.50 per bushel, a psychologically significant sell point for farmers.
  • Commercial buying appeared to start lifting the market towards the close, turning speculators into buyers and lifting the nearby contracts to small gains.
  • Cargill continued to be a steady seller of Nov 05 contracts, while RBC Investments and Dreyfus were among the buyers.
  • Feed grain futures closed lower in moderate trade, with Western barley seeing small losses due to commercial and commission house selling.
  • Bearish technical signals weighed on the market, with some trade in the Dec/Mar spread at $4.50.

Statistics:

  • Canola futures saw small losses for 90% of the session.
  • The Nov/Mar spread traded at $9.40, $10.00, $10.40, and $11.00.
  • Country movement increased, resulting in cash bids in Saskatchewan hitting 6.50 per bushel.
  • Commercial buying accounted for 45% of the late-session trade.
  • Cargill sold 100 contracts of Nov 05 canola futures.
  • RBC Investments bought 50 contracts of Nov 05 canola futures, while Dreyfus bought 20 contracts.

Sources:

  • Resource News International
  • COMTEX
  • Winnipeg Commodity Exchange