(RNI) — Winnipeg Commodity Exchange (WCE) grain and oilseed
futures closed Wednesday’s session mainly higher, with canola advancing in step with
gains in Chicago Board of Trade (CBOT) soybean futures, brokers said.
Canola saw an active trade with intermonth spreading accounting for the bulk of the
volume as commodity funds rolled their January long positions in the March contracts. There was
some light positioning ahead of Statistics Canada’s final crop production report
for 2007, due Thursday.
The total canola volume was estimated at 21,790 contracts, up from Tuesday’s
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trade. There was an active canola options trade as 550 January 470 calls traded at $5.50-
$6.00.
Canola futures rallied moderately, setting fresh contract highs during the session, as
the firm tone in CBOT soybeans supported values. The weak Canadian dollar and talk of
export demand boosted prices, as did friendly technical signals. Traders now indicate that
Chinese canola buying in the past week has risen to five cargoes.
Capping the gains and leading to some choppiness was increased farmer pricing, as
elevator company hedge offerings appeared. Farm gate bids hit as high as $10.05 per
bushel in central Alberta with forward delivery contracts touching $10.70/bu. “These are
Exporters were the best buyers, with only light crusher interest evident. Commission
houses were also buyers during the session. The selling came mainly from elevator
companies as they hedged farmer deliveries.
Western barley futures edged a bit higher in light trade. End-user pricing met farmer
selling, which left the market little changed amid a lack of fresh news. The total barley
volume was estimated at 145 contracts, down from Tuesday’s 211 contracts.
Feed wheat was untraded and unchanged as liquidation orders continue to be the
principal orders in the market, analysts said.
WCE prices, in Canadian dollars per tonne, Dec. 5, 2007
| Settlement | Change | |
| prices | ||
| Canola | ||
| Jan | 475.10 | up 4.10 |
| Mar | 486.70 | up 4.10 |
| Nov | 481.40 | up 2.20 |
| Feed wheat | ||
| Mar | 185.00 | unch |
| May | 191.00 | unch |
| Western barley | ||
| Mar | 197.30 | up 0.30 |
| May | 205.50 | up 0.50 |
WCE spread trade prices, in Canadian dollars. “Volume” represents the number of
spreads.
| Month | Price | Volume |
| Canola | ||
| Jan/Mar | 11.50-12.00 | 7,386 |
| Jan/May | 20.00-21.30 | 133 |
| Jan/July | 25.90-28.00 | 206 |
| Mar/May | 8.50-9.10 | 191 |
| Mar/July | 14.30-15.40 | 113 |
| Mar/Nov | 5.00-3.00 over | 138 |
| May/July | 6.00-7.00 | 138 |
| July/Nov | 19.00-18.10 over | 7 |
| Nov 08/Jan 09 | 5.20-5.30 | 11 |
