Winnipeg Commodity Exchange (WCE) Grain and Oilseed Futures Trading Update

Strategic Insights -

Winnipeg Commodity Exchange grain and oilseed futures traded mostly higher at mid-session due to short-covering and a weaker Canadian dollar, amidst light to moderate activity. The market also witnessed some position evening ahead of Statistics Canada's updated grain and oilseed production survey results. Canola futures were higher at midday, with early gains attributed to short-covering by commission houses and the strength of CBOT soybean values. However, advances were capped by losses in CBOT soyoil futures and weaker Malaysian palm oil values overnight.

Key Takeaways:

  • Grain and oilseed futures at the Winnipeg Commodity Exchange traded mostly higher at mid-session due to short-covering and a weaker Canadian dollar.
  • Market activity was described as light to moderate, with position evening ahead of Statistics Canada's updated grain and oilseed production survey results evident.
  • Canola futures were higher at midday, with early gains attributed to short-covering by commission houses and the strength of CBOT soybean values.
  • Light pricing of some Japanese business helped to underpin canola values, although exporters were unable to confirm any fresh sales overnight.
  • Western barley futures were narrowly mixed at midday, with small gains in CBOT corn futures seen as supportive.
  • Short-covering helped to underpin values in western barley, although light hedge offers from line companies capped the advances and put the nearby December future on the defensive.
  • Feed wheat futures were steady to slightly firmer in quiet trade, with gains in CBOT grain futures providing a firm price floor and the absence of hedge offers.
  • The gains in feed wheat futures were kept in check by the ample feed wheat supply situation, traders said.

Statistics:

  • Grain and oilseed futures traded at mostly higher levels at mid-session.
  • Market activity was described as light to moderate.
  • Canola futures were higher by C$2.00 to $2.80 at midday, with early gains attributed to short-covering by commission houses.
  • CBOT soybean values showed strength, contributing to early gains in canola futures.
  • CBOT soyoil futures and Malaysian palm oil values showed losses overnight, capping advances in canola futures.
  • Western barley futures were narrowly mixed at midday, with small gains in CBOT corn futures seen as supportive.
  • Feed wheat futures were steady to slightly firmer in quiet trade, with gains in CBOT grain futures providing a firm price floor.

Sources:

  • Resource News International, December 06, 2004
  • COMTEX, http://www.comtexnews.com (Winnipeg Commodity Exchange grain and oilseed futures trading data)