February 5, 2008

ICE rapeseed higher on sharp gains in CBOT soy complex

Rapeseed futures traded on ICE Futures Canada were higher at 10:35 a.m. Monday, taking their cue from sharp gains in the Chicago Board of Trade soy complex.

Some futures months hit fresh contract highs on the move up.

One trader said that exporter and domestic crusher buying contributed to the strength in rapeseed.

Talk that China was in the market picking up a cargo of canola was also supportive, according to traders who thought Mexico and Pakistan were also showing some interest.

Commercial hedges limited the upside, although a trader noted that any selling was only coming forward on a scale-up basis.

The Canadian dollar was holding reasonably steady Monday morning, providing little direction for the rapeseed market.

ICE had traded about 6,000 rapeseed contracts by 10:35 a.m. CST. The March/May spread, at CAD12.10 (US$12.16) under, was a feature of the early activity, accounting for about 2,600 of the contracts traded. The March/November spread was also trading at CAD3.10 (US$3.12) over.