WCE close: StatsCan report supports canola

(RNI) — Winnipeg Commodity Exchange grain and oilseed futures closed Thursday’s session narrowly mixed, with canola mainly higher as the market drew support from a bullish Statistics Canada crop report which offset weakness in Chicago Board of Trade (CBOT) soy complex futures, brokers said.

Canola saw a moderate trade as intermonth spreading accounted for much of the volume. Commercials dominated the early spreading, but fund spreading appeared about midsession and traders felt they had rolled about 1,500 January contracts into the March futures by the close.

The total canola volume was estimated at 14,564 contracts, down from Wednesday’s 21,798 contracts, including an estimated 8,046 contracts that were involved in the spread trade.

Canola futures were initially pressured down by the weakness in the CBOT soy complex and the firm Canadian dollar, traders said. However, bringing canola back to modest gains was this morning’s Statistics Canada final crop production report of 2007 as it pegged the canola crop at 8.75 million tonnes, down from their October forecast and below trade estimates.

Also supporting values were friendly technical signals and talk of export interest, although no fresh business was reported. Canola set fresh contract highs today.

Exporters were the best buyers, with Mexico felt to be pricing some previously made sales. Light crusher buying was noted as well. Locals and commission houses appeared on both sides of the market but were net buyers. The selling came mainly from elevator company hedge selling.

Western barley futures ended higher in light trade. The market was lifted by the StatsCan report which pegged the barley crop at 10.983 million tonnes, down from their October forecast of 11.822 million tonnes and well below trade forecasts. Traders noted the need for further rationing of supply, although increased imports of U.S. corn will likely limit the upside in the market, they said.

The total barley volume was estimated at 333 contracts, up from 145 contracts on Wednesday.

Feed wheat was untraded and unchanged.

WCE closing prices, in Canadian dollars per tonne, Dec. 6, 2007

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