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WCE close: Mexican interest lifts canola

Winnipeg (Resource News International) — Canola futures at the Winnipeg Commodity Exchange (WCE) finished narrowly mixed with some of the upward price
action sparked by talk of fresh exporter demand, market watchers
said. The advancing harvest in western Canada and strength in the
Canadian dollar helped to weigh on values.

Position evening ahead of the Labour Day holiday weekend
was a feature of the activity.

Canola finished mixed after trading at higher levels for the
bulk of the day. Good exporter pricing of both old and new business

helped to fuel the early upward price movement seen in canola,
traders said. Exporters were unable to confirm any new business, but
there were indications of Mexican interest, traders said.

Strength in CBOT soybean and soyoil values contributed to the
advances seen in canola, as did a firm European rapeseed settlement.

Some light chart based commodity fund buying was evident early
in the session.

The advances in canola were tempered near the close by
pre-weekend elevator company hedge selling, as there were
indications producers in Western Canada would make good harvest
progress during the Labour Day holiday weekend. Firmness in the
Canadian dollar also helped to trim some of the upward price action,
brokers said. A late sell-off in CBOT soybean values also eroded the
gains seen in canola.

There were an estimated 7,772 canola contracts traded during
Friday’s session, down from 8,372 during the previous session.

Western barley values were mainly higher with concerns about
tight supplies helping to generate some of the upward price action,

traders said. Gains in CBOT corn futures were also seen as
supportive. Much of the volume in barley consisted of large index
funds rolling positions out of the October contract and into the
December future, brokers said.

An estimated 4,888 barley contracts changed hands during the
session. On Thursday, 4,374 contracts were traded.

Feed wheat futures were generally higher with light commercial
demand in the absence of willing sellers resulting in values being
pushed higher, traders said.

There were 171 feed wheat contract traded Friday. On
Thursday, 154 feed wheat contracts changed hands.

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