Winnipeg Commodity Exchange Sees Mostly Higher Grain and Oilseed Futures

Strategic Insights -

The Winnipeg Commodity Exchange (WCE) saw mostly higher grain and oilseed futures on Monday as steady crusher buying lifted the canola market. While canola futures were narrowly mixed for most of the session, they ultimately turned higher in the final minutes of trade in moderate activity. The intermonth spread trade accounted for much of the volume, with the Nov/Jan spread trading at C$8.50 to $8.90.

Key Takeaways:

  • Canola futures closed higher in the final minutes of trade, despite marginal declines earlier in the session due to seasonal harvest pressure, bearish technical signals, and farmer selling.
  • The Nov/Jan spread traded at C$8.50 to $8.90, while the Jan/Mar spread traded at $7.00 to $7.50.
  • An estimated 4,854 contracts were involved in the spread trade, which accounted for much of the total volume of 6,193 contracts.
  • Rain delays in the harvest on the weekend had a positive effect on the market, while the strength in Chicago Board of Trade soy complex futures also contributed to the gains.
  • Late crusher demand was prompted by a drop in the Canadian dollar, but exporters denied confirming any fresh sales.
  • Commodity funds were sellers in the Nov contract, estimated to be around 500 contracts, bringing their total estimated short position to 3,500 to 5,000 contracts.
  • Feed grains posted small gains in light trade, with end-user demand steady but unaggressive.
  • Western barley saw small gains, with an estimated 245 contracts changing hands, up from Friday's 222 contracts.
  • Feed wheat also edged higher, with the volume estimated at 71 contracts, down from Friday's 273 contracts.

Statistics:

  • Total volume: 6,193 contracts, down from Friday's 6,353 contracts.
  • Estimated short position of commodity funds: 3,500 to 5,000 contracts.
  • Total volume in intermonth spread trade: 4,854 contracts.
  • Volume in feed barley: 245 contracts, up from 222 contracts on Friday.
  • Volume in feed wheat: 71 contracts, down from 273 contracts on Friday.

Sources:

  • Resource News International via COMTEX, August 29, 2005
  • Winnipeg Commodity Exchange (WCE)
  • Chicago Board of Trade (CBOT)
  • Canadian dollar exchange rate