Winnipeg Commodity Exchange Sees Mixed Trade in Grain and Oilseed Futures

The Winnipeg Commodity Exchange saw mixed trade in grain and oilseed futures on November 8, 2004, with western barley experiencing losses, while canola values were mostly higher in choppy trade. Locals were active participants in the market, adding to the liquidity in the canola pit. The gains in the CBOT soy complex after early declines contributed to the advances, and commercial and commission house demand, including buyers RBC Investments and Fimat Canada, underpinned the market. However, commercial selling above the market kept the gains in check, and continued strength in the Canadian dollar tempered the advances in the canola market.

Key Takeaways:

• Canola values were mostly higher at midsession, with gains attributed to the CBOT soy complex and commercial and commission house demand.
• Locals were active participants in the market, adding to the liquidity in the canola pit.
• Commercial selling above the market kept the gains in check, limiting the advances in the canola market.
• Continued strength in the Canadian dollar tempered the advances in the canola market, with the currency near 84 US cents in early activity.
• Malaysian palm oil futures closed lower overnight, which may impact Canadian canola sales.
• The Mar/Nov canola spread at C$1.00 over was a minor feature, indicating a relatively stable market.
• Western barley values were mostly lower in light commercial trade, with losses attributed to CBOT corn futures and commercial selling above the market.
• Feed wheat values were higher, but largely untraded at midsession, with thoughts of an oversold market contributing to the early gains.
• Large feed wheat supplies in western Canada continued to keep a lid on the market.

Statistics:

• Canola values increased by a moderate amount in choppy trade.
• The Canadian dollar strength was at 0.84 US cents in early activity.
• Western barley values declined in light commercial trade.
• Malaysian palm oil futures closed 0.05 cents lower overnight.
• The Mar/Nov canola spread was C$1.00 over.
• CBOT corn futures experienced early losses.

Sources:

• Resource News International via COMTEX
• Phil Franz-Warkentin, Resource News International
• Cargill Ltd.
• RBC Investments
• Fimat Canada