WCE close: Crusher/fund demand lifts canola

(RNI) — Canola futures at the Winnipeg
Commodity Exchange finished Monday’s session mainly higher,
with weakness in the Canadian dollar and steady domestic crusher
demand generating much of the upward price action, market watchers
said.

WCE feed wheat and western barley futures were steady to
slightly weaker.

Canola futures were mostly higher with good commercial demand,
believed to be covering domestic processor needs, providing much of
the support, traders said. Adding to the strength in canola was
routine exporter pricing and continued rumours about fresh business
being put on the books.

“With all the Chinese interest in U.S. soybeans, there has to be
some Chinese demand for canola as well,” a broker said.

Good levels of speculative fund buying helped to generate
support in canola, with some of that interest spurred on by friendly
chart signals.

The advances in canola were tempered by steady farmer selling
and the late downturn seen in CBOT soybean and soyoil values,
traders said.

There were an estimated 12,446 canola contracts traded during
Friday’s session, up from 11,069 during the previous session. Of the
contracts traded, 3,224 were spread-related.

Western barley futures were steady to narrowly mixed, with the
losses in CBOT corn futures and the lack of fresh end-user demand
stimulating the downward price action, traders said. Activity was a
light two-way affair between commercials.

An estimated 187 barley contracts changed hands during the
session. On Friday, 45 contracts were traded.

Feed wheat futures were little changed.

There were no feed wheat contract traded Monday. On Friday, 35
feed wheat contracts changed hands.

WCE closing prices, Canadian dollars per tonne, Nov. 19, 2007