Winnipeg Commodity Exchange Sees Mixed Trade in Grain and Oilseed Futures

The Winnipeg Commodity Exchange saw mixed trade in grain and oilseed futures on Monday, with feed grains lower and canola modestly higher due to strength in Chicago Board of Trade soyoil futures. Canola traded actively, with an estimated 5,512 contracts changing hands, down from Friday's 8,193 contracts. The market initially gained momentum due to the weak Canadian dollar, but then softened as CBOT soyoil prices decreased and country deliveries increased.

Key Takeaways:

• Canola prices ended the day modestly higher in moderate trade, with an active trade in Mar/May canola spreads at C$1.00 to $2.00.
• The market was driven by the strength in CBOT soyoil futures and the weak Canadian dollar, but then softened as CBOT soyoil prices decreased.
• Country deliveries increased, with premiums from commercials in the cash market attracting farmer deliveries.
• Weather conditions are moderating across western Canada, encouraging country movement.
• Routine Japanese crusher pricing was evident, with domestic crushers good buyers as canola margins continued to hold in profitable levels.
• Speculative activity was on the lighter side, with commercials being the principal traders in feed grain trade.
• Western barley set fresh contract lows due to a lack of demand and steady farmer selling.
• Feed wheat prices hovered at or just fractionally above contract lows in moderate trade, with country selling accelerated due to farmer pessimism on the feed wheat outlook.

Statistics:

• 5,512 contracts traded in canola, down from 8,193 contracts on Friday.
• 383 contracts changed hands in western barley, down from 426 contracts on Friday.
• 452 contracts traded in feed wheat, up from 95 contracts on Friday.
• The Canadian dollar was weak, providing an added boost to canola prices.
• CBOT soyoil prices softened, causing the market to drift down.

Sources:

• Resource News International via COMTEX, January 24, 2005.