WCE close: Canola up as dollar plunges

(RNI) — Winnipeg Commodity Exchange grain and oilseed
futures closed Thursday’s session mainly higher, as canola was supported by the steep
decline in the Canadian dollar against the U.S. greenback, brokers said.

Canola saw an active trade, with index funds rolling their January futures contracts into
March accounting for the bulk of the volume. Fund rolling is expected to dominate acitvity
into the beginning of next week.

The total canola volume was estimated at 16,601 contracts , up from Wednesday’s
13,152 contracts, including an estimated 10,924 contracts which were involved in the
spread trade.

Canola futures rallied, setting fresh contract highs in all actively traded contracts.
The early firm tone in Chicago Board of Trade (CBOT) soy complex futures and the steep decline
in the Canadian dollar as it approached parity with the U.S. greenback gave support to
values. Bullish technical signals and lingering talk of fresh export bookings also
encouraged the firm tone, traders said.

Capping the advance was increased farmer pricing on a scale-up. Speculative profit-taking ahead of month-end was also evident. Canola gains faded to just modest advances
when the CBOT soy complex dropped back to unchanged.

Exporters and crushers were strong buyers, with commodity funds also good buyers.
Funds were felt to have purchased 1,000 to 1,500 contracts. The selling was mainly
comprised of elevator company hedging, although there was also commission house profit-taking evident in the trade, analysts said.

Western barley closed the session higher in light trade with the bulk of the activity
in the March contract. The weak Canadian dollar, slow farmer selling and bullish technical
signals gave support.

Light commercial activity appeared on both sides of the market, with much of the
volume comprised of commodity funds “rejigging” their barley positions ahead of the end of
the month, brokers said. The total barley volume was estimated at 718 contracts, up from
645 contracts on Wednesday.

Feed wheat was unchanged and untraded.

WCE closing prices in Canadian dollars per tonne, Nov. 29, 2007

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