WCE close: Canola boosted by falling dollar

(RNI) — Winnipeg Commodity Exchange grain and oilseed
futures closed Tuesday’s session mostly higher with solid gains in canola in the wake of
the steep decline in the Canadian dollar, brokers said.

Canola saw an active trade with much of the volume comprised of intermonth
spreading, mainly by commercials. There was some small positioning ahead of Thursday’s
Statistics Canada final production report of the year.

The total canola volume was estimated at 12,733 contracts, down from Monday’s
14,115 contracts, including an estimated 7,282 contracts that were involved in the spread

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Canola futures closed moderately higher with prices settling within a few dollars of
contract highs as the weak Canadian dollar and firm tone in the Chicago Board of Trade
(CBOT) soy complex sent prices higher, brokers said. Friendly technical signals and disciplined
scale-up selling by producers contributed to the firm tone.

Talk of fresh export bookings continued, although no business could be confirmed.
One trader noted that exporters are being “very closed-mouth” about export bookings and
he added that was when deals were usually being concluded.

Capping the advance was the weak tone in crude oil and declines in both European
rapeseed and Malaysian palm oil, traders said.

Exporters and crushers were the best buyers with commission house buying also

Western barley ended a bit higher in light trade. Intermonth spreading accounted for
much of the activity with year end positioning also noted, said analysts. Commercials
dominated the trade. Prices firmed in the wake of gains in CBOT corn and on the weak
Canadian dollar.

The total western barley volume was estimated at 211 contracts, up from Monday’s
79 contracts.

Feed wheat was untraded and unchanged amid a lack of interest.

WCE closing prices in Canadian dollars per tonne, Dec. 4, 2007

WCE spread trade prices, in Canadian dollars. “Volume” represents the number of
spreads.

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