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Winnipeg Commodity Exchange Sees Mixed Trade in Canola and Feed Grains

Strategic Insights

— 1 min read

The Winnipeg Commodity Exchange (WCE) experienced mixed trade in canola and feed grains at mid-session on August 24, 2004, with canola futures declining in moderate volumes. The market responded to a slightly bearish Statistics Canada production report and losses in CBOT soybeans. Farmer hedges accounted for the early selling as the harvest began in Alberta. Statistics Canada reported 2004/05 Canadian canola production at 8.243 million metric tons, at the high end of early trade estimates.

Key Takeaways:

  • Canola futures were lower at midday due to a slightly bearish Statistics Canada production report and losses in CBOT soybeans.
  • Farmer hedges accounted for the early selling as the harvest started in Alberta.
  • Statistics Canada pegged 2004/05 Canadian canola production at 8.243 million metric tons, above early trade estimates of 7.50 million to 8.30 million tons.
  • Actual production could drop by as much as 1 million tons due to recent frosts, but a 7 million ton crop is still above 2003 production of 6.669 million tons.
  • Commodity fund buying took canola prices off their lows, with Cargill Ltd. being a noted buyer for domestic crusher demand.
  • Barley values were up at midday supported by commission house short covering.
  • Commercial selling, however, kept advances in check due to concerns about more malt barley grading as feed.
  • Losses in CBOT corn futures tempered gains in the Winnipeg market.
  • Feed wheat futures were steady to higher, but largely untraded, with end-user pricing providing support.

Statistics:

  • 8.243 million metric tons: 2004/05 Canadian canola production (Statistics Canada)
  • 7.50 million to 8.30 million tons: Early trade estimates of Canadian canola production
  • 6.669 million tons: 2003 Canadian canola production
  • 1 million tons: Potential drop in actual production due to frosts
  • 13.452 million: StatsCan barley number, at the low end of early trade estimates
  • Moderate volumes: Trading volumes for canola futures

Sources:

  • "Winnipeg, MB, Aug 24, 2004 (Resource News International via COMTEX) ... Copyright 2004 Resource News International"
  • "http://www.comtexnews.com"

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