Winnipeg (Resource News International) — Winnipeg Commodity Exchange (WCE) grain and
oilseed futures closed Monday’s session mostly higher with solid gains in canola in
response to the firm tone in Chicago Board of Trade soy complex advances, brokers said.
Canola saw a moderate trade with intermonth spreading enhancing activity.
The total canola volume was estimated at 9,279 contracts, down from Friday’s
12,805 contracts, including an estimated 2,198 contracts involved in the spread trade. In
options activity, an estimated 200 November 430 calls traded while volumes in Mar 480 calls
Canola futures rallied to fresh contract highs Monday. The firm tone in CBOT soy
complex futures and strength in European rapeseed prices boosted the canola
market. Bullish technical signals and the scale up nature of elevator company selling
contributed to the gains.
Weighing on the market was the very strong Canadian dollar, the lack of fresh
export interest and the favorable harvesting conditions, analysts said.
Crushers were the main buyers with only light routine exporter pricing for Japanese
accounts noted. Commodity funds were buying as they add 750-1,000 contracts to their
November long position. The selling was entirely commercial with scale-up elevator company
hedging accounting for the bulk of the selling, traders said.
Feed grains finished higher in moderate activity. The firm tone in the U.S. grain
markets provided a bullish push to the Winnipeg market, brokers said.
Western barley posted strong gains rising to set fresh contract highs as end user
demand absorbed commercial offerings. Bullish technical signals also prompted buying.
Friday. There was some October/December spreading evident in the trade.
Feed wheat closed higher, rallying at the close as U.S. wheat futures surged to limit
advances. The volume was estimated at 1,760 contracts up from Friday’s 435 contracts.
The entire trade comprised of October/December spreading as traders said that index funds were
rolling the October futures into the December contract at C$10-$11.