Winnipeg Commodity Exchange Trades on Electronic Platform for the First Time

Strategic Insights -

The Winnipeg Commodity Exchange (WCE) initiated trading on its electronic platform after closing its public outcry trading floor on Friday, December 17, 2004. The transition was surprisingly smooth, with large volumes of trades executing without issues. Canola futures rose due to the firm tone in Chicago Board Of Trade soy complex futures and the weak Canadian dollar. However, the market was trimmed back by the lack of fresh export demand and concerns that Japanese buyers feel canola prices are too high.

Key Takeaways:

  • The WCE traded on its electronic platform for the first time, with a smooth transition from the public outcry trading floor.
  • Canola futures rallied at the opening, following the firm tone in Chicago Board Of Trade soy complex futures, and the weak Canadian dollar.
  • Commercials dominated the trade, with crusher buying noted, while speculators engaged in some profit taking.
  • Feed grain futures ended lower in light to moderate trade, ignoring the gains in CBOT grains.
  • Western barley saw "reasonable" trade with 231 contracts traded, down from 698 contracts on Friday.
  • Feed wheat posted losses in moderate trade, with an estimated 200 contracts changing hands, up from 72 on Friday.
  • The lack of fresh export demand and concerns that Japanese buyers feel canola prices are too high trimmed the market back from strong gains.

Statistics:

  • 11,190 contracts traded in canola, up from 11,160 contracts on Friday.
  • 231 contracts traded in Western barley, down from 698 contracts on Friday.
  • 200 contracts traded in feed wheat, up from 72 contracts on Friday.
  • Commercials dominated the trade, with crusher buying noted.
  • Speculators engaged in some profit taking.

Sources:

  • Resource News International via COMTEX
  • Winnipeg Commodity Exchange
  • Chicago Board Of Trade