Winnipeg Commodity Exchange Sees Mixed Trading Session for Grain and Oilseed Futures

Grain and oilseed futures on the Winnipeg Commodity Exchange (WCE) experienced a narrowly mixed trading session on April 13, 2005, with canola futures ending higher in light trade. Trading activity was influenced by the discussion of export activity, which underpinned canola prices. The May/July spread attracted significant interest, with an estimated 1,828 contracts involved in the trade, contributing to a total estimated volume of 3,660 contracts. The Chicago Board of Trade soy complex was largely ignored by the market, as canola remained firm despite the US market experiencing losses of up to 6 cents per bushel. Routine Japanese pricing and talk of Mexican buying also provided support for canola prices.

Key Takeaways:

• Canola futures ended higher in light trade, despite a mixed overall session for grain and oilseed futures on the WCE.
• The May/July spread was the most active, with an estimated 1,828 contracts traded and a total estimated volume of 3,660 contracts.
• The Chicago Board of Trade soy complex was largely ignored by the market, as canola remained firm despite the US market experiencing losses of up to 6 cents per bushel.
• Routine Japanese pricing and talk of Mexican buying provided support for canola prices, with exporters confirming that Mexico had been seeking 100,000 metric tons of canola the previous week.
• Farmer selling continues to be sidelined by unattractive prices and the beginning of planting, with some early fields of canola having been seeded in southern Alberta.
• New crop canola encountered some selling on expectations for higher canola plantings this spring, while feed grain markets were narrowly mixed in almost no activity or price movement.

Statistics:

• 1,828 contracts were traded in the May/July spread, accounting for an estimated 72% of the total spread trade.
• The May/July spread accounted for a total estimated volume of 3,660 contracts, down from Tuesday's 5,955 contracts.
• Canola prices strengthened by up to 6 cents per bushel, despite the US market experiencing losses of up to 6 cents per bushel.
• 260 contracts changed hands in Western barley, down from Tuesday's 297 contracts.
• Feed wheat saw only small commercial participation, with an estimated 303 contracts traded, down from 527 contracts traded on Wednesday.
• Don Bousquet, a spokesperson for Resource News International, noted that demand for feeder cattle in the auction marts is primarily for cattle to go on grass, keeping feed demand down.

Sources:

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