WCE close: Canola down on weak CBOT soyoil

(RNI) — Winnipeg Commodity Exchange grain and oilseed
futures closed Monday’s session mainly lower with canola down modestly on the weak
tone in Chicago Board of Trade soyoil futures, brokers said.

Canola saw a moderate trade with intermonth spreading augmenting the activity.
Index funds were felt to have completed their roll of January futures into the March contract
today. However other commodity funds were not felt to have substantially moved their Jan
positions into the March contract, yet.

The total canola volume was estimated at 14,115 contracts, down from Friday’s
26,242 contracts, including an estimated 9,770 contracts involved in the spread trade.

Canola futures posted losses with futures down only modestly as the WCE was
undermined by the weak tone in CBOT soyoil futures. Losses in international vegetable oil
markets and crude oil markets also weighed on values as did bearish technical signals,
traders said.

Underpinning the market was the weak tone in the Canadian dollar and continued
talk of exports with two cargoes of canola felt to have been sold to either China or Mexico,
traders said. Canola rallied back to almost unchanged when CBOT soybeans firmed to a
mixed close, although soyoil remained lower.

Exporters were unable to confirm the export activity, but they did note that besides
the weaker Canadian dollar, ocean freight rates have been falling, making canola more
attractive in the export market and that there is “definitely” buying interest around for
canola.

Exporters were the best buyers with steady crusher buying also noted. The selling
came from elevator company hedge offerings and speculative selling, with traders
estimating that commodity funds had sold about 500 January contracts.

Western barley futures declined in light trade with the lack of end user demand
allowing the market to trend lower despite the firm tone in CBOT corn for most of the
session, brokers said. Commercials dominated the small trade.

The total barley volume was estimated at 79 contracts, down from 520 contracts on
Friday.

Feed wheat was untraded and unchanged amid a lack of interest.

WCE closing prices, in Canadian dollars per tonne, Dec. 3, 2007

WCE spread trade prices, in Canadian dollars. “Volume” represents the number of
spreads.