(Resource News International) — Winnipeg Commodity Exchange (WCE) grain and oilseed
futures closed Tuesday’s session mixed with canola up on talk of exports and gains in the
Chicago Board of Trade soy complex, brokers said.
Canola saw a very heavy trade with much of the activity comprised of intermonth
spreading as commercials were noted moving their November contracts into deferred contracts.
Commercials must liquidate their November contracts before the end of October when November becomes the cash month.
The total canola volume was estimated at 17,670 contracts, down from 20,075
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spread trade.
Canola rallied on the big gains in CBOT soy complex futures and on talk that both
Dubai and Mexico have purchased one cargo of canola each for fourth quarter 2007
delivery. Scale-up farmer selling and improved crush margins contributed to the gains,
traders said.
Limiting the advance were bearish technical signals and the firming back of the
Canadian dollar from losses on Monday when Canadian markets were closed for
Thanksgiving, brokers said.
Crushers were the best buyers with exporter buying noted as well. Commodity fund selling was evident with traders estimating their selling at about 500 November contracts.
Elevator companies were strong scale up sellers as well. Locals and commission houses
were found on both sides of the market.
Western barley declined in light trade. The lack of demand, weakness in CBOT
corn on Monday when the WCE was closed and bearish technical signals sent prices
down in the mostly commercial trade.
The total estimated barley volume was 510 contracts, down from Friday’s 1,524
contracts.
Feed wheat dropped sharply, hitting limit losses, reflecting the declines in U.S. wheat
markets over the past two sessions, analysts said. Trade was light and commercially dominated. The total volume was estimated at 35 contracts, down from 45 contracts on Friday.
