WCE close: Canola up on CBOT soy rally

(RNI) — Winnipeg Commodity Exchange grain and oilseed
futures closed Wednesday’s session mixed with canola a bit higher in the wake of sharp
gains in Chicago Board of Trade (CBOT) soybean futures, as soybean values hit some of their
highest prices since the drought year of 1988, brokers said.

Canola saw a moderate trade, with intermonth spreading only a minor component of
the session’s activity.

The total canola volume was estimated at 8,619 contracts, down from Tuesday’s
11,263, with an estimated 2,752 contracts involved in the spread trade.

Canola prices rallied in the wake of the sharp gains in CBOT soy complex futures.
A softer tone to the Canadian dollar contributed some support to the market with friendly
technical signals also prompting some buying.

However, the canola market saw only modest gains as the lack of demand and
expected resulting buildup in canola stocks in Western Canada weighed on prices. Traders
expect to see canola stocks build to 1.5 million tonnes in Friday’s Canadian Grain
Commission weekly visible stocks report, up from 1.371 million in the week ended Nov. 4.

A less aggressive stance in the market by crushers also contributed to the smaller
gains. Fresh export demand is felt to be considerably below the current market prices with
Chinese demand felt to be $20-$30 under current values.

Also weighing on the market was increased elevator company hedging as well as
other commercial offerings.

Besides crushers, there was some routine exporter buying noted as well as
speculative buying interest, analysts said.

Western barley ended mixed in light trade with much of the activity comprised of
intermonth spreading by commercials. The market ignored the gains in CBOT corn and
reacted to the lack of end user demand and bearish technical signals which accounted for
the mixed choppy close, brokers said.

The total barley volume was estimated at 608 contracts, up from Tuesday’s 400
contracts.

Feed wheat futures ended steady to a bit higher in light volumes as liquidation trade
continued amid a lack of interest in the market. Intermonth spreading enhanced the level of
activity, said traders.

The total volume was estimated at 331 contracts, up from 26 contracts on Tuesday.

WCE closing prices, Canadian dollars per tonne, Nov. 14, 2007

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