WCE close: Canola market choppy on Canadian dollar

(Resource News International) — Winnipeg Commodity Exchange grain and oilseed
futures closed Tuesday’s session narrowly mixed with canola fractionally higher as the
surging Canadian dollar created a choppy tone, brokers said.

Canola saw an active trade with intermonth spreading accounting for the bulk of
the volume. Commercials positioning ahead of November becoming the cash month accounted
for the bulk of the spread trade, although there was some light commodity fund rolling
also noted.

Total canola volume was estimated at 17,521 contracts, down from Monday’s
20,478 contracts. The total spread trade on Tuesday was estimated to include 13,190
contracts.

Canola prices saw a choppy session, ending narrowly mixed with prices generally
marginally higher in heavy volumes. The market was supported by the gains in Chicago
Board of Trade soy complex futures and a slower pace to farmer selling, traders said.

However, balancing that off was the strong Canadian dollar as it rallied to 33-year
highs against the U.S. greenback. The lack of fresh exports, large supplies being held by
commercials and bearish technical signals weighed on the market, accounting for
choppiness in the trade as prices bounced to both sides throughout the session.

Crushers were the best buyers with light routine exporter pricing noted. The selling
was mainly local and commission house and elevator company, analysts said.

Western barley closed steady to lower in light trade as the lack of farmer selling
gave support, offsetting the lack of strong end-user demand and weakness in CBOT corn,
brokers said. The total estimated volume was 163 contracts, down from 205 contracts on
Monday.

Feed wheat futures ended lower in light trade as continued commercial liquidation
and the steep losses in U.S. wheat futures sent values lower. The total estimated volume
was 187 contracts, up from Monday’s 30 contracts.

WCE closing prices, Oct. 23, 2007, Canadian dollars per tonne.

Spread trade prices. “Volume” represents the number of
spreads.