WCE close: Large supplies undermine canola

(Resource News International) — Winnipeg Commodity Exchange grain and oilseed futures finished Friday’s session lower, associated with the declines in CBOT soybean complex values and with large visible supplies in Western Canada, market watchers said.

WCE feed wheat and western barley values were mostly higher,
with the limit-up gains in U.S. wheat futures supportive.

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

Canola finished lower undermined by steady commission house,
commercial and commodity fund selling. Some of that selling was tied

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Adding to the bearish sentiment were concerns over the amount
of canola sitting in the commercial pipeline system in Western
Canada. Pre-weekend hedge selling by line companies helped to weigh
on prices, as did the strong Canadian dollar, which continues to
scare off fresh export business.

Light underlying support in canola did, however, come from
light scale-down pricing of past export business. Some minor
domestic crusher demand at the lows was also evident, brokers said.

The rolling out of November positions in January contracts
continued to be a feature of the trade seen in canola.

There were an estimated 29,107 canola contracts traded during
Friday’s session, up from 27,781 during the previous session. Of the
contracts traded, 22,722 were spread-related.

Western barley values were mostly higher at the close. Support
was derived from the sharp advances seen in CBOT wheat values as
well as the firm price tone seen in CBOT corn. The absence of farmer
deliveries helped to underpin prices, traders said. Activity was a
light two way affair between commercials.

An estimated 699 barley contracts changed hands during the
session. On Thursday, 386 contracts were traded. Of the contracts
traded Friday, 50 were spread-related.

Feed wheat futures were generally higher with the advances in
CBOT wheat futures the main supportive price influence, brokers
said. The absence of willing sellers amplified the price advances.

There were 103 feed wheat contract traded Friday. On Thursday,
50 feed wheat contracts changed hands.

Canola spread trade prices, Oct. 19

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