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WCE close: Canola firms on fund buying

Winnipeg (Resource News International) — Winnipeg Commodity Exchange (WCE) grain and oilseed futures closed Wednesday’s session mainly higher as canola soared to fresh contract highs as heavy technically driven commodity fund buying boosted the market,
traders said.

Canola saw a very heavy trade with intermonth spreading augmenting activity.

The total canola volume was estimated at 13,735 contracts, up from Tuesday’s
6,105 contracts including an estimated 2,224 contracts involved in the spread trade.
Canola options saw an active trade as an estimated 931 options traded.

Canola prices surged to fresh contract highs as the firm tone in Chicago Board of
Trade soy complex futures and bullish technical signals lifted the market. Improved crush
margins and confirmation that Bangladesh picked up a cargo of canola in the past week
also supported values.

The continued disciplined scale up nature of farmer pricing was also supportive as
was rainfall halting the harvest in Alberta.

The firm Canadian dollar capped the gains, traders said.

Crushers were strong buyers with only routine exporter pricing noted. Speculators
accounted for much of the volume as commodity funds were strong buyers today. Fund
buying was estimated at 2,500-3,500 November contracts. Commission house buying was also
triggered by the gains.

Today’s selling comprised of some profit taking, elevator company hedging and
commercial selling.

Feed grain trade was light to moderate.

Western barley rallied in light activity with intermonth spreading augmenting the
volumes. The firm tone in CBOT corn and tight barley supplies gave support as end user
pricing met light elevator company selling, brokers said.

The total barley volume was estimated at 524 contracts, down from Tuesday’s
1,921 contracts.

Feed wheat was pressured down by the weakness in CBOT wheat but finished
unchanged in a lack of interest as only an estimated 2 contracts traded, down from 224
contracts on Tuesday.

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