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Commodity futures

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

Strategic Insights

— 1 min read

Grain and oilseed futures on the Winnipeg Commodity Exchange (WCE) experienced a mixed trading session on Monday, with canola prices seeing an upward boost due to fresh export business and commercial demand. On the other hand, feed grains such as wheat and barley struggled with sluggish cash markets and a drop in end-user demand. Despite the challenges, canola futures ended higher, while western barley futures and feed wheat values were steady to slightly firmer.

Key Takeaways:

  • Canola futures ended higher due to fresh commercial demand and support from the continued lack of deliveries into the cash market.
  • Additional support in canola came from the generally firm price tone experienced by CBOT soyoil during most of the session.
  • The upside in canola was limited by the large crop prospects and the lack of fresh domestic crusher demand.
  • Western barley futures were steady to slightly firmer in quiet trade, with light commercial bidding and the absence of willing sellers contributing to the gains.
  • Feed wheat values were mostly lower due to light commercial offerings and a drop-off in end-user demand.
  • The weaknesses in CBOT grain values also undermined feed wheat prices.
  • Mexico was reportedly making enquiries about buying approximately 150,000 metric tons of Canadian canola, although exporters were unable to confirm any fresh business.
  • An estimated 3,511 canola contracts were traded, up from 1,453 on the previous Friday, with 600 spread-related contracts also traded.
  • Of the spread activity, November/January at C$7.50 to C$8.00 under was the main feature.
  • Western barley futures saw an estimated 123 contracts traded, up from 79 on the previous Friday.
  • Feed wheat trade was estimated at 245 contracts, up from 190 seen on Friday.

Statistics:

  • An estimated 3,811 contracts (3,511 canola + 300 spread-related) involving canola were traded on Monday.
  • Canola contracts traded: 3,511 (up from 1,453 on Friday).
  • Spread-related contracts traded: 600.
  • Western barley contracts traded: 123 (up from 79 on Friday).
  • Feed wheat contracts traded: 245 (up from 190 on Friday).

Sources:

  • Resource News International, "Winnipeg Commodity Exchange Sees Mixed Trading Session", Jul 25, 2005, Resource News International via COMTEX.

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