Winnipeg Commodity Exchange (WCE) Grain and Oilseed Futures Finish Lower

Strategic Insights -

The Winnipeg Commodity Exchange (WCE) saw a mostly downward trend in grain and oilseed futures on Thursday, attributed to a combination of factors including declines in CBOT grain and soybean futures, firm Canadian dollar, and lack of fresh export demand. The sharp losses in the CBOT soybean complex had a significant impact on canola prices, with the absence of fresh export demand and good growing conditions for the canola crop in Alberta and Saskatchewan further contributing to the downward trend. Domestic crusher demand also played a role in undermining prices. Despite some scale-down pricing of old export business and reluctance of producers to deliver canola into the cash market, the weakness in canola prices was limited.

Key Takeaways:

  • Grain and oilseed futures at the Winnipeg Commodity Exchange (WCE) finished Thursday's session mainly lower, with declines in CBOT grain and soybean futures driving much of the weakness.
  • The sharp losses in the CBOT soybean complex accounted for much of the downward price action experienced by canola, with the absence of fresh export demand and good growing conditions for the canola crop in Alberta and Saskatchewan further weighing on values.
  • Domestic crusher demand also undermined prices, resulting in an estimated 2,807 canola contracts traded, down from 4,201 on Wednesday.
  • Western barley futures were mainly lower, with losses in CBOT corn futures and lack of fresh end-user demand in Western Canada contributing to the downward price slide.
  • Feed wheat values were little changed, with minor support coming from light commercial demand and slow pace of farmer sales.
  • Prices are in Canadian dollars per metric ton.

Statistics:

  • 2,807 canola contracts traded on Thursday, down from 4,201 on Wednesday.
  • 127 barley contracts changed hands on Thursday, down from 280 on Wednesday.
  • Feed wheat trade was estimated at 336 contracts, down from 554 seen on Wednesday.
  • The September/November spread traded between C$5.50 under.
  • The November/January spread traded at C6.00 to C$8.00 under.

Sources:

  • Resource News International, "Grain and Oilseed Futures Finish Lower at WCE"
  • Winnipeg Commodity Exchange (WCE) traded data
  • CBOT grain and soybean futures prices
  • Canadian dollar exchange rate