WCE close: Canola down on CBOT soy

(Resource News International) — Winnipeg Commodity Exchange grain and oilseed
futures closed Monday’s session mainly lower with canola undermined by the weak tone
in Chicago Board of Trade soy complex futures, although the steep plunge in the
Canadian dollar kept the losses small, brokers said.

Canola saw an active trade, with intermonth spreading accounting for much of the
volume. Commodity funds were felt to be rolling November contracts into the January contract, with
commercials also providing a significant amount of the volume.

The total estimated canola volume was 20,478 contracts, down from Friday’s
29,107 contracts, including an estimated 14,196 contracts which were involved in the
spread trade.

Canola posted losses in the wake of declines in CBOT soy complex futures and the
continued lack of significant fresh export demand, traders said. Bearish technical signals
triggered heavy speculative selling. Burdensome canola supplies in commercial hands
also weighed on values.

Canola declines were muted by the steep decline in the Canadian dollar and slow
country selling.

Routine exporter buying gave support as Japanese pricing accelerated because of
the plunge in the Canadian dollar, said exporters. Domestic crusher pricing was also
noted.

The selling came from commodity funds, locals and commission houses, with
steady elevator company hedging also noted. Traders noted funds liquidated almost 1,000
contracts early in the session.

Western barley closed mixed in light trade. The weakness in CBOT corn and
sluggish end user demand undermined the market. However, the absence of significant
farmer selling kept the losses modest in the small activity, brokers said.

The total barley volume was estimated at 205 contracts, down from Friday’s 699
contracts.

Feed wheat finished the day lower in light activity, as the continued liquidation of
open interest by commercials pressured the market down amid a total lack of interest,
traders said. The total volume was estimated at 30 contracts, down from 103 contracts on
Friday.

WCE closing prices, Oct. 22, 2007.

Spread trade prices. “Volume” represents the number of spreads.