WCE close: Canola up on spec buying

(RNI) — Winnipeg Commodity Exchange grain and oilseed
futures closed Friday’s session higher as canola was boosted by speculative buying
prompted by bullish technical signals, brokers said.

Canola saw a very active trade with most of the volume comprised of intermonth
spreading as commercials and commodity funds continued to roll their futures contracts
forward. Traders felt that funds have as many as another 10,000 January contracts to roll into
March.

The total canola volume was estimated at 29,927 contracts, up from Thursday’s
19,539 contracts, including an estimated 25,616 contracts involved in the spread activity.

Canola rallied moderately posting fresh contract highs for the sixth session in a row
as bullish technical signals, gains in Chicago Board of Trade (CBOT) soybean futures and slow
farmer selling boosted the market. The buying was mainly speculative with commercial
participation described as routine.

The gains in canola were restrained by the weaker tone in CBOT soyoil, the firm
Canadian dollar, the lack of fresh exports and ideas that canola is overbought and needs a
technical correction lower limited the advance, traders said.

Routine exporter and crusher buying was augmented by good amounts of commission
house and local buying, traders said. Commodity funds were absent from the outright
trade. The selling also mainly speculative as traders took profits ahead of the weekend.
Elevator company selling was light.

Western barley edged up in small activity amid a lack of farmer selling. Traders feel
the market is in the grips of the seasonal Christmas doldrums. The total estimated barley
volume was 99 contracts, down from Thursday’s 195 contracts.

Feed wheat was untraded and unchanged.

WCE closing prices, in Canadian dollars per tonne, Dec. 14, 2007

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