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Commodity futures

Winnipeg Commodity Exchange Sees Mixed Trading on Friday

Strategic Insights

— 1 min read

Trade activity on the Winnipeg Commodity Exchange (WCE) was marked by both declines and stability in various grain and oilseed futures on Friday. Canola prices faced the largest losses, with over 6,000 trades made early in the day. The decline was partly attributed to commodity fund selling and unexpectedly large losses in CBOT soybeans. However, extremely cold temperatures in western Canada and a sharp decline in the Canadian dollar's value against its US counterpart provided some support to canola values.

Key Takeaways:

  • Canola futures at the WCE were down at midsession, with over 6,000 trades made early in the day, due in part to commodity fund selling and losses in CBOT soybeans.
  • CBOT soybean losses contributed to bearish sentiment in the Winnipeg market, but cold temperatures in western Canada provided some support to canola values.
  • A sharp decline in the Canadian dollar's value against its US counterpart underpinned the canola market, with some support also coming from extremely cold temperatures limiting farmer movement.
  • Scale down exporter buying and inability to confirm overnight Canadian canola sales limited declines in the canola market.
  • Western barley futures were steady to marginally lower at midsession, with support coming from increased feed demand due to the cold weather, but large feed grain supplies overhanging the market.
  • Expectations for increased feed demand provided some support to Western barley, as farmers continue to be reluctant sellers.
  • Losses in CBOT corn futures provided early direction for the barley market.
  • A cash broker indicated that Canadian barley prices will continue to move lower to limit imports of US corn.
  • Feed wheat futures were steady to higher in light trade at midsession, with all early activity confined to the nearby March contract.

Statistics:

  • More than 6,000 trades had been made in canola over the course of the early trading session.
  • Trades in the March/May spread in canola occurred between C$1.40 to C$1.80 under, with about 2,000 spread trading happening.
  • 35 trades were posted for the feed wheat March contract, with no other details provided on contract specifics.
  • No specific data on barley futures trades was mentioned.

Sources:

  • Resource News International via COMTEX
  • COMTEX (http://www.comtexnews.com)

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