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WCE close: Canola down on soaring loonie

(Resource News International) — Winnipeg Commodity Exchange (WCE) grain and
oilseed futures closed Tuesday’s session mixed with canola mostly lower in a choppy
trade as the strong Canadian dollar weighed on values, brokers said.

Canola saw a moderate trade with intermonth spreading accounting for much of the
activity.

The total canola volume was estimated at 8,108 contracts, down from Monday’s
9,279 contracts, including an estimated 3,842 contracts involved in the spread trade.
There was light canola options trade as 100 November 430 calls traded.

Canola futures ended mainly a bit lower in a very choppy trade as the continued
strength in the Canadian dollar against the U.S. greenback pressured the market to mostly
small losses, traders said.

The firm tone in Chicago Board of Trade soybeans was balanced off by weakness
in soybean oil. The lack of fresh export demand also weighed on the market offsetting the
bullish technical signals. Farmer selling was steady as the harvest approached its final
stages with farm gate bids as high as $9.70/bu. on the western Prairies attracting in
producer offerings, cash dealers said.

Crushers were the main buyers with routine exporter pricing noted. The selling was
composed of commission house profit-taking and elevator company hedging.

Feed grains ended mainly lower in a very choppy trade with activity described as
light.

Western barley was mainly higher on a lack of farmer selling. End user demand
met elevator company selling as an estimated 690 contracts traded, down from Monday’s
1,019 contracts. December/March spreading enhanced activity.

Feed wheat was mixed as an estimated 430 contracts traded, down from 1,760
contracts on Monday. The entire trade comprised of October/December spreading at $7.00.

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