Sign in Subscribe
Commodity futures

Winnipeg Commodity Exchange Sees Moderate Gains in Grain and Oilseed Futures

Strategic Insights

— 1 min read

The Winnipeg Commodity Exchange (WCE) saw a moderate increase in grain and oilseed futures on Monday, with canola futures advancing significantly in the wake of steep gains in the Chicago Board of Trade (CBOT) soy complex. The weak Canadian dollar and concerns about canola production contributed to the rally, with continued rainfall in Manitoba and Alberta also impacting planting and yields. Despite capping the rally were steady levels of farmer selling and ideas that overall growing conditions are still favorable, the market remained lifted by the strong gains in CBOT futures prices.

Key Takeaways:

  • Canola futures posted moderate gains, with the July/Nov spread trading at C$8.10 to $9.00 and the Nov/Jan spread at $6.80 to $7.50.
  • The total estimated volume at 7,248 contracts, up from Friday's 2,422 contracts, with an estimated 5,552 contracts involved in the spread trade.
  • The weak Canadian dollar and concerns about canola production lifted the market, with continued rainfall interrupting Manitoba planting and expectations that farmers will now plant shorter season, lower yielding canola varieties.
  • Steady levels of farmer selling and fear of high moisture levels in Alberta limited the upside in the market, trade sources said.
  • Commercials dominated most trade, with crusher and Japanese exporter buying meeting cash dealer selling.
  • Some speculative rolling of positions from July to Nov was also observed, analysts said.
  • Feed grains were mostly marginally higher in light trade, with a firm tone in CBOT grains and sluggish farmer selling lifting the market.
  • Western barley edged up in very small volumes, with an estimated 164 contracts traded, down from Friday's 171 contracts.
  • Feed wheat saw gains in light trade, with the July/Oct spread trading at $10.40 and the Oct/Dec spread also trading.
  • Don Bousquet, Resource News International, reported on the market developments.

Statistics:

  • 5,552 contracts were involved in the spread trade.
  • 7,248 contracts were traded in total, up from 2,422 contracts on Friday.
  • The July/Nov spread traded at C$8.10 to $9.00.
  • The Nov/Jan spread traded at $6.80 to $7.50.
  • The Nov05/Nov06 spread traded at $32.50 to $34.50.
  • 164 contracts were traded in Western barley, down from 171 contracts on Friday.
  • 365 contracts were traded in feed wheat, up from 84 contracts on Friday.

Sources:

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

Read more