WCE close: Canola follows soybeans down

(Resource News International) — Winnipeg Commodity Exchange (WCE) grain and oilseed
futures closed Tuesday’s session mainly lower with canola down in a choppy trade
following the weakness in Chicago Board of Trade soybeans, brokers said.

Canola had an active trade with the bulk of the volume comprised of intermonth
spreading as commercials continued to roll their futures contracts forward. There was
also light fund rolling of November contracts into the January contract.

The total canola volume was estimated at 16,037 contracts, up from Monday’s
14,042 contracts. An estimated 11,564 contracts were involved in the spread activity.

Canola saw a choppy session as the market was eventually pushed lower in the
actively traded contracts by the weakness in CBOT soybeans. The lack of fresh export
activity also weighed don the market.

However, creating the choppiness and giving some support were the firm tone in
CBOT soyoil futures, a weaker Canadian dollar, improved crush margins and the scale-up
nature of farmer selling, traders said.

Crushers were noted buyers, with routine exporter pricing also noted. The selling
was mainly commercial, with elevator company scale-up selling evident. There was also
some pricing of forward delivery contracts. Cash dealers feel that farmers have a
significant number of forward contracts to price this month.

Western barley posted losses in moderate trade with intermonth spreading by
commercials enhancing the volume.

The weak tone in CBOT grains pressured barley down, as did the unaggresive
nature of end-user pricing. Trade sources estimated that feed lots have covered 80 per cent of
their November needs and have about 35 per cent of the December requirements covered.

End-user demand met mainly elevator company selling with some long liquidation
triggered by bearish technical signals as well, analysts said.

The total barley volume was estimated at 960 contracts, down from 1,540 contracts
traded on Monday.

Feed wheat declined in light commercial trade. The weak tone in U.S. wheat markets
and the lack of interest in the market allowed prices to weaken, brokers said. The total
feed wheat volume was estimated at 18 contracts, up from no activity on Monday.

Spread trade prices are in Canadian dollars and the volume represents the number of spreads.