WCE closing: Canola up on CBOT rally

Winnipeg (Resource News International) — Winnipeg Commodity Exchange (WCE) grain and oilseed futures closed Thursday’s session higher with canola boosted by the surge higher in Chicago Board of Trade soy complex futures, brokers said.

Canola saw a moderate trade with intermonth spreading enhancing the level of activity.

The total canola volume was estimated at 8,372 contracts, up from Wednesday’s 4,341 contracts, including an estimated 2,384 contracts involved in the spread trade.

Canola rallied in the wake of gains in the CBOT soy complex and on bullish technical signals. Talk of fresh export booking lifted prices as well, although exporters would not confirm any business.

“The (export) business has been done,” said a trader, “but they (exporters) won’t confirm it until they have it covered (priced) in the market and that can take up to a week.”

Capping the rally was the rapid pace of harvesting and near ideal harvesting conditions forecast through the Labour Day long weekend, traders said. Farmer pricing has increased “dramatically” this week, said a cash dealer. The firm Canadian dollar also weighed on the market.

Exporters and crushers were strong buyers with speculative buying also noted.

Commodity funds were felt to have purchased about 500 November contracts while commission houses were also good buyers for their speculative accounts. The selling was principally commercial with elevator company hedging described as “heavy” by traders.

Western barley futures rallied in active trade with intermonth spreading accounting for much of the volume. The October/December spread was heavily traded as index funds were felt to be rolling their October position into the December contract.

Slow farmer selling boosted the market with end users good buyers in the outright trade. Also giving good support to barley were indications from the Canadian Wheat Board that they were aggressive barley sellers in the export market and that they would be absorbing significant barley supplies, analysts said.

The total estimated barley volume was 4,374 contracts, up from 867 contracts on Wednesday with an estimated 3,598 contracts involved in the spread trade.

Feed wheat posted gains with new contract highs set during the session. Trade was light with the bulk of the activity comprised of the October/December spread.

The firm tone in U.S. wheat futures gave support, traders stated. The total volume was estimated at 154 contracts, down from Wednesday’s 375 contracts. The October/December spread accounted for an estimated 150 contracts of Thursday’s total volume.