Winnipeg Commodity Exchange (WCE) Futures Weakened Ahead of Statistics Canada Report

Strategic Insights -

Ahead of Statistics Canada's production report update for the 2004 season, futures at the Winnipeg Commodity Exchange (WCE) are expected to start the week on the defensive, driven by weaker demand and the absence of fresh calls from CBOT corn and soybean values. Canola futures are seen opening lower, while Western barley and feed wheat futures are expected to remain steady to down slightly in quiet trade. The market is cautious ahead of the crucial production report, which may impact the downward price momentum in canola.

Key Takeaways:

  • Canola futures are expected to open C$1.00 to $1.50 per metric ton lower on Monday, driven by weaker CBOT soybean and soyoil futures.
  • Continued commercial liquidation and poor basis levels in the country are adding to the downward price momentum in canola.
  • The absence of fresh exporter interest and warmer weather outlooks are also weighing on canola prices.
  • The downward price momentum may be capped by oversold price sentiment and the decision of farmers to store canola instead of delivering it.
  • Malaysian palm oil futures and a weaker Canadian dollar may provide some support for canola prices.
  • Western barley and feed wheat futures are expected to remain steady to down 50 cents in quiet trade, driven by lower calls for CBOT corn futures.
  • The large percentage of the barley and feed wheat crop that will grade as feed in Western Canada is adding to the bearish price sentiment.

Statistics:

  • Canola futures are expected to open C$1.00 to $1.50 per metric ton lower on Monday.
  • Western barley and feed wheat futures are expected to remain steady to down 50 cents in quiet trade.
  • 50 cents is the expected decrease in Western barley and feed wheat futures prices.
  • The percentage of the barley and feed wheat crop that will grade as feed in Western Canada is expected to impact market prices.

Sources:

  • Resource News International
  • COMTEX
  • Winnipeg Commodity Exchange (WCE)