Winnipeg Commodity Exchange New-Crop Commodity Price Trends

Oct '00 feed wheat and western barley futures established their to-date contract lows during December 1999 and early January 2000, and have generally trended higher since then. Oct '00 feed wheat futures ended the month at $145.50/tonne, up $8.80/tonne from the contract low, and roughly in line with the gains observed in Minneapolis Grain Exchange Dec '00 wheat futures. Oct '00 western barley futures ended the month at $127.30/tonne, $9.10/tonne above the contract low.

The Nov '00 oilseed contracts demonstrated significant price volatility during the month of March. The Nov '00 canola futures established a contract low of $267.50 early in the month, then rallied in large part due to North American weather concerns to end the month $18.70/tonne above the contract low. Nov '00 flaxseed prices started the month about $2.00/tonne above the contract low of $228.00, and followed the strength of the canola market to end the month at $242.50/tonne.

New crop feed wheat prices continued to trade at price levels below year-ago levels while feed barley prices established themselves slightly above year-ago levels. Both feed grains ended the month well above the prices experienced on expiration of the Oct '99 feed grain futures.

Despite continuing to trade at discounts relative to year ago prices, the WCE Nov '00 canola and flaxseed futures ended the month at price levels well above where the Nov '99 oilseed futures expired.

The Oct '00 feed wheat minus western barley spread ended the month at $18.20/tonne, well below year ago levels. The Nov '00 canola minus flaxseed spread ended the month at $43.70/tonne. To-date, the Nov '00 canola minus flaxseed spread has not experienced the same volatility observed one year ago. Recent price developments will be reflected in the planting decisions of Canadian producers, with Statistics Canada scheduled to release the March planting intentions on April 20, 2000.