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WCE close: Canola down on profit-taking

(Resource News International) Winnipeg Commodity Exchange grain and
oilseed futures closed Wednesday’s session mixed with canola pressured down by profit-taking in response to early declines in Chicago Board of Trade soy complex futures,
brokers said.

Canola saw heavy trade with intermonth spreading enhancing activity.

The total canola volume was estimated at 12,996 contracts, up from Tuesday’s
8,108 contracts including an estimated 3,730 contracts involved in the spread trade.
Canola options trade as light with 300 November 430 calls traded.

Canola posted moderate losses in the wake of weakness in CBOT soy complex

which stimulated heavy profit-taking, analysts said. Ideas that canola was overvalued
relative to U.S. soybeans contributed to the selling and accounted for canola seeing a
bigger decline than the U.S. market. The weak tone in CBOT soyoil futures offset the late
rally in CBOT soybean prices, brokers said.

The relatively firm Canadian dollar and sluggish fresh export interest contributed to
the weak tone, as did the advancing harvest. The Manitoba harvest is virtually finished,
the Saskatchewan harvest in its final stages and the Alberta harvest only half completed.

Underpinning the market were continued friendly technical signals and continued
delays in the Alberta harvest.

Exporters were the best buyers, with small crusher buying noted. The export interest
was felt to be greater than just routine pricing, although no fresh export business was
confirmed. Commodity funds were felt to have picked up 500 November contracts. The selling
came mainly from commission house profit-taking with steady elevator company hedge
selling noted.

Western barley futures ended firmer in the wake of strength in CBOT corn futures

as prices set fresh contract highs. Intermonth spreading accounted for a minor portion of
the volume.

Much of the buying was felt to be commission house speculative buying on bullish
technical signals. Feedlot pricing was also evident.

The selling was comprised of good levels of elevator company offerings and
commercial selling. The total volume was estimated at 2,637 contracts, up from 690
contracts on Tuesday.

Feed wheat futures dropped sharply in the wake of steep declines in U.S. wheat
prices. Trade was dominated by commercials with the total volume estimated at 74
contracts, down from Tuesday’s 430 contracts.

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