WCE close: Canola falls with U.S. market

(Resource News International) — Winnipeg Commodity Exchange grain and oilseed
futures closed Thursday’s session mixed, with canola pressured down by the weakness in
Chicago Board of Trade soybean futures, brokers said.

Canola saw an active trade, with intermonth spreading by commercials across the
various contracts enhancing the volume.

The total canola volume was estimated at 13,834 contracts, down from
Wednesday’s 15,888 contracts, including an estimated 4,558 contracts that were involved
in the spread trade.

Canola posted moderate losses in step with the declines in CBOT soybean futures.
However, losses were not as large as the U.S. soybean market decline as a firmer tone in
CBOT soyoil gave support as did the disciplined scale up nature of elevator company
selling, traders said.

The continued absence of significant export demand contributed to the weak tone.
Canola moved to its lows in the last half hour of activity as the losses in CBOT soy
complex futures intensified.

Underpinning the market was the softer tone to the Canadian dollar, although
traders are generally bullish on the Canadian dollar against the U.S. currency. Also
supportive were favourable crush margins.

Crushers were the best buyers on Thursday with only routine exporter pricing
noted. Commission houses and commodity funds appeared on both sides of the market
but were felt to be net sellers. Commission house stops were hit today triggering selling
that sent the market to its lows. Commercials were the main sellers with elevator
company hedge selling described as strong.

Western barley futures posted losses in moderate trade in the wake of moderate
losses in CBOT corn futures. End-user demand remains lackluster and that contributed to
the weak tone. The bulk of the day’s trade comprised of index funds rolling their long
December positions into the March contract, brokers said.

The total estimated barley volume was 3,361 contracts, down from 3,683 contracts
on Wednesday including an estimated 3,140 contracts involved in the spread trade.

Feed wheat rallied moderately in light trade as liquidation trading continued in the
December contract amid a lack of interest. The total feed wheat trade was estimated at 225
contracts, down from Wednesday’s 293 contracts.

WCE closing prices, Canadian dollars per tonne, Nov. 1, 2007

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