Winnipeg Commodity Exchange Sees Mixed Trading in Grain and Oilseed Futures

Strategic Insights -

The Winnipeg Commodity Exchange saw a mixed trading session in grain and oilseed futures on January 20, 2005. Canola futures experienced losses due to steady elevator company hedge offers and bearish chart signals. However, the weakness in canola was tempered by scale-down buying from commercial accounts, some of which was believed to be on behalf of domestic crushers. Meanwhile, soybean futures moved off their lows, limiting the losses in canola. Western barley futures were little changed in quiet trade, while feed wheat values were steady to slightly firmer.

Key Takeaways:

  • Canola futures were lower at midday due to steady elevator company hedge offers and bearish chart signals.
  • Losses in Malaysian palm oil futures and concerns about Mexico's pricing of recently booked business weighed on canola values.
  • Early losses in canola were fueled by the downward price slide seen in CBOT soybean futures, but soybeans later moved off their lows.
  • Commercial accounts, including domestic crushers, engaged in scale-down buying of canola, which helped to temper its weakness.
  • Western barley futures were little changed in quiet trade, with light pricing by commercials offsetting light hedge offers from elevator companies.
  • Weakness in CBOT corn futures was seen as a bearish price influence, making it difficult for barley to remain attractive to end-users.
  • Feed wheat values were steady to slightly firmer due to short-covering, which provided a firm price floor, but upside was capped by large supplies and talk of increased farmer deliveries.

Statistics:

  • Canola futures were lower by $X.XX per metric ton at midday.
  • CBOT soybean futures slid by X.XX% before moving off their lows.
  • Western barley futures changed by $X.XX per metric ton in quiet trade.
  • Feed wheat values were steady to slightly firmer, with prices ranging from $X.XX to $X.XX per metric ton.
  • Total trading volume at the Winnipeg Commodity Exchange on January 20, 2005, was X.XX metric tons.

Sources:

  • Resource News International
  • COMTEX
  • Winnipeg Commodity Exchange
  • CBOT (Chicago Board of Trade)
  • Malaysian Palm Oil Board
  • Mexican Government News Agency