(RNI) — Winnipeg Commodity Exchange grain and oilseed
futures closed Thursday’s session mixed with canola prices higher on the continuing
plunge in the Canadian dollar as the dollar has dropped over seven per cent in less than a week,
brokers said.
Canola saw a heavy trade. The total canola volume was estimated at 17,326
contracts, up from Wednesday’s 8,619 contracts.
Canola prices rallied as the Canadian dollar continued a steep decline after hitting
its highest level since the late 1800s against the U.S. greenback last week. The falling
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Chinese demand for canola will be triggered if the Canadian currency drops to parity with
the U.S. dollar once again.
Friendly technical signals were also supportive, as speculative buying was triggered
by the market penetrating the C$448.00 resistance level in the January futures contract.
Maintaining selling pressure on the market were the weakness in the Chicago Board
of Trade (CBOT) soy complex futures and the large supplies of canola in the commercial pipeline
in Western Canada, traders said.
Crushers and exporters were strong buyers today, with speculators also buyers.
Sources estimate that commodity funds were good buyers today.
The selling was mainly commercial, with elevator company hedging noted. Cash
Western barley futures declined in light commercial activity as the weak tone in
CBOT corn and sluggish end-user bookings accounted for the day’s losses, brokers said.
The total barley volume was estimated at 574 contracts, down from Wednesday’s
608 contracts.
Feed wheat was little changed, with the light activity comprised of December/March
spreading. The lack of interest in the markets accounted for the lack of price movement as
an estimated 362 contracts changed hands, up from 331 contracts on Wednesday.
WCE closing prices, Canadian dollars per tonne, Nov. 15, 2007
| Settlement | ||
| prices | Change | |
| Canola | ||
| Jan | 452.30 | up 5.60 |
| Mar | 463.70 | up 6.70 |
| Nov | 464.70 | up 3.90 |
| Feed wheat | ||
| Dec | 176.00 | unch |
| Mar | 181.00 | dn 1.00 |
| Western barley | ||
| Dec | 182.90 | dn 0.30 |
| Mar | 195.20 | dn 0.80 |
