WCE close: New highs for canola

(RNI) — Canola futures at the Winnipeg
Commodity Exchange finished Tuesday’s session on a firmer
footing with a number of new highs established during the session.

Strength was associated with fresh demand and the advances posted by
the Chicago Board of Trade (CBOT) soybean complex, market watchers said.

WCE feed wheat and western barley futures were steady to lower.

Canola futures were higher with good commercial and speculative
fund buying taking values upwards, traders said. Some of the
commercial interest was said to be covering steady demand from
domestic crushers as well as new export business. There were reports
that at least one cargo of Canadian canola had been sold to the
United Arab Emirates and that more may be in the works, traders
said.

Continued rumours of sales to China and Pakistan were also
making the rounds, brokers said.

Some of the fund buying that was uncovered reflected the
penetration of key technical resistance, especially in the January
future. The January, March and November ’08 canola contracts also
established new highs during the day.

The advances in CBOT soybeans and soyoil also played a role in
the higher canola prices.

The gains in canola were offset by steady elevator company
hedge selling.

There were an estimated 11,729 canola contracts traded during
Tuesday’s session, down from 12,446 during the previous session. Of
the contracts traded, 3,470 were spread-related.

Western barley futures were steady to lower in choppy activity.
The lack of fresh demand from domestic end-users allowed light
commercial offerings to push prices down, traders said. The gains
seen in CBOT corn futures helped to slow the price drop in barley.

An estimated 272 barley contracts changed hands during the
session. On Monday, 187 contracts were traded.

Feed wheat futures were lower in non-existent activity.

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

WCE closing prices, Canadian dollars per tonne, Nov. 20, 2007.

WCE spread trade prices, Nov. 20, 2007, in Canadian dollars. “Volume”
represents the number of spreads.