WCE canola futures mainly higher

Winnipeg Commodity Exchange canola futures ended mainly higher on Tuesday, supported by crusher buying and a weaker Canadian dollar, traders said. Canola settled $3.30 per tonne higher to 50 cents lower, with July up 60 cents at $380.70 and November up 70 cents at $399.20.
Gains were checked by farmer selling and long liquidation by commission houses and funds, traders said, with routine scale-down buying seen from exporters. Canola was firm relative to US soya. At the Chicago Board of Trade, July soyabean oil futures settled 0.15 US cent per lb lower at 35.27 US cents and July soyabeans were up 3-1/2 US cents per bushel at US $8.26-1/2.
Canola crops appeared to be in good shape in most parts of the Prairies, traders said. Saskatchewan's crop report pegged canola conditions as 14 percent excellent, 62 percent good, 21 percent fair and 3 percent poor.
Oilseed development was rated normal by 59 percent of Saskatchewan crop reporters, with 39 percent rating development as behind. In canola spread trade, an estimated 4,464 July/November traded from $18.20 to $19.10.
Canola volume was estimated at 13,586 contracts, down from a total of 15,330 on Monday. Barley futures continued to set new highs in new-crop months on strong world demand for feedgrains amid tight supplies.
The August 1 end for the Canadian Wheat Board's monopoly continued to support the market, although traders said a court challenge by a group of farmers opposed to the move was keeping some participants sidelined. The CWB said on Tuesday it was legally obliged to remain in the barley market for the upcoming 2007/2008 crop year.
"I don't know how viable they're going to be," a trader said, noting the agency does not own handling facilities. "I think the open market will probably take away a lot of business." July barley settled $5 per tonne higher at $199 with October up $5 at $168 and December up $4.50 at $171.50. In spread trade, 158 July/October barley spread traded from $30 to $32 and 52 October/December from 60 cents to $3.
Barley volume was estimated at 1,350 contracts, down from 2,408 on Monday. Short covering supported feed wheat futures, with July ending steady at $169 per tonne and October up $1 at $168, while 198 July/October spread traded from $1 to $2.10, premium July.