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WCE close: Canola falls on profit-taking

Winnipeg (Resource News International) — Winnipeg Commodity Exchange (WCE) grain and oilseed futures closed Thursday’s session mainly lower with canola pressured down by
profit-taking, brokers said.

Canola saw moderate activity with intermonth spreading a minor component of the
trade.

Total canola volumes were estimated at 7,321 contracts, down from Wednesday’s
13,735 contracts, including an estimated 1,238 contracts involved in the spread trade.
Canola options activity comprised of 200 November calls and two May 440 puts..

Canola saw a very choppy trade with prices bouncing to both sides throughout the

session, ending mainly lower. Profit taking across the market pressured the price down as
the very strong Canadian dollar and the lack of fresh export demand contributed to the
weakness, traders said. The advancing harvest was also a bearish feature of the trade.

Underpinning the market were bullish technical signals, the gains in the Chicago
soy complex and light, unaggresive farmer pricing.

Commodity funds were noted on both sides of the trade, but were felt to be net
buyers having picked up 300 to 500 November contracts.

Routine exporter pricing was augmented by crusher buying. The selling comprised
mainly of profit-taking with only light elevator company selling noted. Besides some
commodity fund profit-taking, commission houses were noted taking profits.

Feed grain futures ended mainly lower in light trade with the weak tone in CBOT
grains pressuring WCE feed grains down, brokers said. The rising Canadian dollar was
also bearish as it makes U.S. corn imports cheaper, said an end user.

Western barley futures declined in light trade with profit taking contributing to the

losses. “Sloppy technicals (signals)” and the “cheaper corn prices” prompted the selling
in a mainly commercial trade.

Total barley volume was estimated at 605 contracts, up from Wednesday’s 524
contracts.

Feed wheat dropped moderately in light trade with the bulk of the activity
comprised of the October/December spread at $7. The total estimated volume was 507
contracts, up from just two contracts traded on Wednesday.

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