WCE canola ends higher

20 Jun, 2007

Winnipeg Commodity Exchange canola futures ended mostly higher on Monday, lifted by sharp gains in US soya markets and on crusher buying. Traders said July was lower amid rolling of positions from that contract to November and other deferred months.
Canola ended $4.60 per tonne higher to 30 cents lower, with July down 30 cents at $383.40 and November up 70 cents at $405.40. "Canola was supported by beans," a canola trader said. "There was rolling of positions from the July to November."
Chicago Board of Trade July soyabean oil futures settled 0.21 US cent per lb higher at 36.09 US cents and July soyabeans rose 8 US cents per bushel to US $8.55-1/4. Traders said an estimated 6,629 July/November spreads traded at $20.50 to $22.40.
Canola volume was an estimated 18,421 contracts, up from a total of 18,090 on Friday. Barley futures continued to be pressured by hedges, profit taking and by news of another legal challenge to plans for an open market from August 1, traders said.
"You put a position on and you hear that kind of news - it doesn't put a good taste in your mouth," a trader said, speaking about the legal and political uncertainty surrounding the barley market. The CWB said on Monday it would apply for a judicial review of the federal government's move to end the board's monopoly on sales of Western barley as of August 1.
Traders said barley was weighed by profit taking after sharp gains the past three to four weeks. They said there was also a pick up in farmer selling. "There was hedging and profit taking," the trader said. October barley settled $2 per tonne lower at $172.80 and December down 90 cents at $175.90. Barley volume was an estimated 784 contracts, up from 642 on Friday. Feed wheat futures were higher in thin trade. October rose $1 per tonne at $172.50.

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