WCE close: Canola falls on slow demand

(Resource News International) — Winnipeg Commodity Exchange grain and oilseed
futures closed Monday’s session mixed, with canola pressured down by slow demand and
the continued strong Canadian dollar, brokers said.

Canola saw a moderate trade with only minor amounts of intermonth spreading by
commercials.

The total canola volume was estimated at 6,730 contracts, down from Friday’s
9,314 contracts, with the intermonth spread activity estimated at 1,976 contracts.

Canola futures posted small losses as the continued absence of significant fresh
export demand and the strength of the Canadian dollar against the U.S. greenback
weighed on the market. “There’s only one story here (in canola) and that is the total lack
of fresh (export) bookings with the loonie (Canadian dollar) at near-record highs,” said a
trade source.

Bearish technical signals and losses in crude oil and soyoil prices contributed to the
price slide, traders said.

Underpinning the market was the firm tone in Chicago soybean futures and the
slow pace to farmer selling. There was little fresh news to drive the market.

Routine exporter and crusher buying met mainly commercial selling with light
elevator company hedging noted. Locals and commission houses were sellers throughout
the session.

Western barley futures declined in light activity as the lack of country movement
underpinned the market in only light end-user demand, brokers said. Weighing on prices
was losses in Chicago Board of Trade corn futures, the firm Canadian dollar and the
sluggish nature of fresh demand, they added.

The total barley trade as estimated at 256 contracts, down from 684 contracts
traded on Friday. Intermonth spreading was a minor component of the volume.

Feed wheat ended lower in light activity as liquidation trade continued in the December
contracts amid a lack of interest in the market. The total estimated volume was 30
contracts, up from only five contracts on Friday.

WCE closing prices, Canadian dollars per tonne, Nov. 5, 2007

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