WCE close: New highs set in barley

(Resource News International) Canola futures at the Winnipeg
Commodity Exchange finished Friday’s session mainly lower with
losses associated with a drop-off in demand and weakness in the CBOT
soybean complex, market watchers said.

WCE western barley values closed sharply higher with a number
of months establishing new contract highs on fresh demand and
tightening global supplies, brokers said. Feed wheat values also
posted good gains.

Canola finished lower with the losses spurred on by steady
commercial and commission house selling. Some of those losses were

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stimulated by the lack of fresh export demand with the strong
Canadian dollar and high ocean freight rate levels sidelining a lot
of importers, traders said.

Adding to the weakness in canola were the losses seen in CBOT
soybean and soyoil values and pre-weekend hedge selling by line
companies. Attractive cash bids have spurred increased farmer
deliveries of canola, brokers said.

Underlying support in canola was linked to light domestic
crusher buying.

There were an estimated 11,607 canola contracts traded during
Friday’s session, down from 12,499 during the previous session. Of
the contracts traded, 3,032 were spread-related.

Western barley values posted sharp advances with a number of
new contract highs established during the session. The advances were

spurred on by news Russia was restricting barley exports, which was
seen tightening up the global feed market, traders said.

Additional
support in barley came from news the Canadian Wheat board was
considering entering into the domestic cash market and buying barley
from line companies for movement into export markets, brokers
said.

An estimated 2,596 barley contracts changed hands during the
session. On Thursday, 1,423 contracts were traded.

Feed wheat futures also posted good gains, with advances tied to
the firm price tone seen in U.S. wheat values and to spillover from
the strength seen in western barley, traders said. Activity was a
two-sided commercial affair.

There were 249 feed wheat contract traded Friday. On
Thursday, 185 feed wheat contracts changed hands.