(RNI) — Winnipeg Commodity Exchange grain and oilseed
futures closed Wednesday’s session mixed with canola lower on the weak tone in Chicago
Board of Trade (CBOT) soyoil futures, brokers said.
Canola saw an active trade, with intermonth spreading augmenting the trading
volume. Commercials were positioning themselves ahead of the index fund roll of their January
futures into the March contract that is expected to take place beginning tomorrow and
continuing into early next week.
The total canola volume was estimated at 13,152 contracts, up from 9,780 contracts
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Canola ended the day a bit lower following a choppy session. The weak tone in
CBOT soyoil, inspired by the steep losses in crude oil markets, pressured canola down,
traders said. Also pressuring the market was a firmer tone to the Canadian dollar, although
its overall impact was felt to be minor.
Canola’s losses were minimized by the disciplined unaggresive nature of farmer
pricing, talk of further export interest and gains in CBOT soybean futures.
Traders indicated that China continues to seek canola, after taking three cargoes in the
past few days, while an earlier purchase of canola by Pakistan was actually larger than the
one cargo reported.
Cash dealers noted that a narrowing in the excessively wide farmgate basis in
Alberta suggests the glut of canola is slowly being cleared up and the lack of demand
has been reversed.
Exporters were the best buyers, with light crusher pricing also noted. The selling
came from elevator company offerings and speculative profit taking after prices hit fresh
contract highs on Tuesday.
Western barley prices were higher in light activity with intermonth spreading
accounting for the bulk of the trade. Slow farmer selling gave support, but was partially
offset by the sluggish pace to fresh demand, brokers said. Ideas that barley was still
undervalued also gave support. Commercials dominated the activity, including the spread
trade.
The total barley volume was estimated at 645 contracts, up from Tuesday’s 262
contracts, with an estimated 416 contracts involved in the spread trade.
Feed wheat was unchanged and untraded as the market continued to suffer a lack of
interest as commercials abandon the contract for use for pricing, said brokers.
WCE closing prices, Canadian dollars per tonne, Nov. 28, 2007
| Settlement | Change | |
| prices | ||
| Canola | ||
| Jan | 469.40 | dn 1.30 |
| Mar | 480.30 | dn 1.30 |
| Nov | 475.90 | dn 2.10 |
| Feed wheat | ||
| Dec | 184.00 | unch |
| Mar | 185.00 | unch |
| Western barley | ||
| Dec | 181.90 | up 6.90 |
| Mar | 193.90 | up 5.30 |
