WCE close: Canola firm on weaker dollar

(RNI) — Winnipeg Commodity Exchange grain and oilseed
futures closed Tuesday’s session mainly higher, with canola boosted by the weak Canadian
dollar, brokers said.

The WCE was closed on Monday for Remembrance Day.

Canola saw a moderate trade with intermonth spreading a minor component of the
activity.

The total canola volume was estimated at 11,263 contracts, up from Friday’s 7,881
contracts, including an estimated 2,238 contracts involved in the spread trade.

Canola rallied in the wake of gains in Chicago Board of Trade (CBOT) soybean futures, with
the steep decline in the Canadian dollar since Friday contributing to the firm tone as it
prompted ideas that fresh export bookings have appeared, traders said. They indicated that
both regular Canadian canola customers, Mexico and Japan, made additional bookings
following the drop in the dollar, with the firmness in the Japanese yen also encouraging
increased demand.

Friendly technical signals and news that the Australian canola crop is smaller than
earlier estimates contributed to the gains.

Capping the rally was weakness in CBOT soyoil futures, steep losses in crude oil
prices and strong farmer selling, analysts said.

Light crusher pricing was noted with the bulk of the buying coming from exporters.
Commodity fund buying appeared early as funds bought 1,000 January contracts. The selling
was principally commercial with elevator company scale-up hedging noted throughout the
session.

Western barley futures ended mainly higher in light activity with intermonth
spreading accounting for much of the volume. The weak tone in CBOT corn and the lack of
end-user demand undermined values early. However, farmer selling was light and that
pulled the market higher at the close.

The total barley volume was estimated at 400 contracts, up from Friday’s 362
contracts.

Feed wheat posted small losses prompted by declines in CBOT wheat amid a lack
of interest in the market, brokers said. The total estimated volume was 26 contracts, up
from no activity on Friday.

WCE closing prices, Canadian dollars per tonne, Nov. 13, 2007.

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