WCE close: corn sell-off undermines barley

(Resource News International) – Canola futures at the Winnipeg
Commodity Exchange (WCE) finished mainly lower with losses in CBOT
soybean values linked to some of the downward price action, market
watches said. Barley values managed to post new highs early in the
session in view of strong demand and tight global feed supplies. A
late sell-off and profit-taking, however, later erased the advances
seen in barley.

Position evening ahead of the weekend was a feature of the
trade.

Canola finished mainly lower with steady commission house and
local liquidation orders, prompted by the sell-off seen in CBOT
soybean values, accounting for some of the downward price action,
traders said.

Pre-weekend elevator company hedge selling helped to weigh on
prices as did the strong Canadian dollar. End of month profit-taking
was also evident and further undermined prices.

The losses in canola, however, were limited by steady domestic
crusher demand and by the relatively firm price tone seen in CBOT
soyoil.

The rolling of positions by funds accounts from the November
contract into the January future, was a feature of the canola trade,
brokers said.

There were an estimated 15,156 canola contracts traded during
Friday’s session, up from 12,935 during the previous session. Of
the contracts traded 9,824 were spread related.

Western barley values posted good gains with new contract highs
set during the early part of the day. Tight world feed barley
markets, strong export demand and slow producer offerings to the
country elevator system in Western Canada helped to generate good
support, traders said. Weakness in CBOT corn futures tempered some
of the upward price action as did late profit-taking by a variety of
market players.

An estimated 1,877 barley contracts changed hands during the
session. On Thursday, 1,689 contracts were traded. Of the contracts
traded Friday, 516 were spread related.

Feed wheat futures were steady to lower with the absence of
demand prompting some minor selling. Activity was a light two sided
commercial affair, brokers said.

There were 152 feed wheat contract traded Friday. On
Thursday, 25 feed wheat contracts changed hands.