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Commodity futures

Winnipeg Commodity Exchange (WCE) Grain and Oilseed Futures Close Mixed

Strategic Insights

— 1 min read

Winnipeg Commodity Exchange grain and oilseed futures closed in a mixed session on Wednesday, with canola narrowly mixed as intermonth spreading accounted for much of the day's activity. Despite initial weakness in canola due to a record large supply, a rally in Chicago Board of Trade soyoil futures and strong crush margins supported values. The buying came mainly from crushers, with moderate amounts of commercial selling and commodity fund selling also present. Feed grain futures, on the other hand, ended lower in light barley and moderate feed wheat trade due to weakness in CBOT corn futures and sluggish end-user demand.

Key Takeaways:

  • Canola futures closed narrowly mixed, with intermonth spreading accounting for much of the day's activity.
  • The Jan/Mar (6,470 contracts) spread traded at C$6.10 to C$6.70, while the Jan/Mar (400 contracts) traded at C$35.00 to C$35.50.
  • An estimated 8,400 contracts were involved in the spread trade, with a total volume of 11,825 contracts, up from Tuesday's 8,720 contracts.
  • Farmer pricing has dropped off noticeably, with cash bids as low as $4.00/bu in parts of Saskatchewan.
  • The canola market is considered seriously oversold and in need of a correction higher.
  • The main push higher in canola came from crushers, with routine Japanese pricing also evident.
  • Commodity fund selling was present, with about 500 Mar contracts being shorted.
  • Feed grain futures ended lower in light barley and moderate feed wheat trade due to weakness in CBOT corn futures and sluggish end-user demand.
  • Commercial activity dominated the feed wheat trade, with 1,252 contracts trading, up from Tuesday's 312 contracts.

Statistics:

  • Canola locked limit down on Tuesday (Source: unknown)
  • Canola prices lower by C$6.70 to C$8.80 in heavy trade (Source: unknown)
  • Total volume of 11,825 contracts, up from Tuesday's 8,720 contracts
  • An estimated 8,400 contracts involved in the spread trade
  • Cash bids as low as $4.00/bu in parts of Saskatchewan
  • Commodity fund selling of about 500 Mar contracts
  • Feed wheat trade dominated by commercials, with 1,252 contracts trading, up from Tuesday's 312 contracts

Sources:

  • Winnipeg Commodity Exchange (WCE)
  • Resource News International via COMTEX
  • Copyright 2005 Resource News International

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