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Commodity futures

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

Strategic Insights

— 1 min read

The Winnipeg Commodity Exchange (WCE) saw a narrowly mixed session in grain and oilseed futures on Tuesday, with canola prices drawing support from ideas that the market is oversold and in need of a corrective bounce. However, a lack of fresh export activity, a firm Canadian dollar, and bearish technical signals led to small losses. The market saw buying on ideas that it was oversold, but sluggish demand and large supplies of feed grains in western Canada offset this sentiment.

Key Takeaways:

  • Canola futures ended a bit lower after bouncing to both sides during the session, with 11,769 contracts traded, down from Monday's 13,481 contracts.
  • Support for canola prices came from the idea that the market is seriously oversold and in need of a corrective bounce.
  • Slower country movement and removal of premiums in the cash markets last week also contributed to support.
  • The firm tone in Chicago Board of Trade soy complex futures encouraged gains in canola prices.
  • Offset by the lack of fresh export activity, firm Canadian dollar, bearish technical signals, and large global supply of oilseeds.
  • Routine Japanese export pricing and domestic crusher buying was noted, but on a scale down.
  • The selling came from commercials and commission houses, with line elevator companies also noted as sellers.
  • Feed grain futures were narrowly mixed in small trade, with a weak tone in the CBOT grain market largely ignored.
  • Western barley closed narrowly mixed in moderate trade, with most of the activity comprising of the Mar/May spread at C$1.50.
  • Commission house short covering met commercial liquidation selling.
  • Feed wheat saw a small commercial trade with prices little changed amid the lack of interest.
  • An estimated 565 contracts of western barley traded, down from 644 contracts on Monday.

Statistics:

  • 11,769 contracts of canola traded on Tuesday, down from Monday's 13,481 contracts.
  • 565 contracts of western barley traded, down from 644 contracts on Monday.
  • 184 contracts of feed wheat traded, down from 190 contracts on Monday.
  • The Mar/May spread in canola futures accounted for the bulk of the trade.

Sources:

  • Resource News International via COMTEX
  • COMTEX (http://www.comtexnews.com)

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