February 21, 2008

Rapeseed futures lower on ICE Futures Canada

Rapeseed futures traded on ICE Futures Canada were lower at 10:55 a.m. CST Wednesday.

Losses in outside markets were weighing on rapeseed, as was downward momentum from the overnight session.

Undermining rapeseed values is weakness in the Chicago market, with both Chicago Board of Trade soy and soy oil prices trading lower, brokers said. Declines overnight in European Matif rapeseed values also weighed on the crop.

Additional downward pressure stemmed from losses in energy markets as well as ideas that rapeseed is overvalued and due for a downward correction. Profit-taking on the back of Tuesday's advances further helped to undermine prices.

Canada's poor crush margins also are contributing to rapeseed's price decline, according to some traders.

The losses, however, were limited by the Canadian dollar, which is softer versus its US counterpart.