February 28, 2008

 

Canadian rapeseed contract falls in tandem with US soy

 

 

Grain and oilseed futures at ICE Futures Canada (ICE) closed Wednesday's ( Feb 28, 2008) session lower, with rapeseed dropping moderately in the wake of declines in CBOT soy complex values, brokers said.

 

Rapeseed trade was moderate, with intermonth spreading augmenting activity. Commercials, rolling their futures forward ahead of month end, comprised the bulk of the activity. Rapeseed options trade was active with trade in May 700 and 750 calls.

 

The total rapeseed volume was estimated at 8,466 contracts, down from 19,969 contracts on Tuesday ( Feb 27, 2008), including an estimated 5,750 contracts involved in the spread trade.

 

Rapeseed futures were lower for the bulk of the overnight trading session on the weakness in outside markets. Rapeseed ended Wednesday ( Feb 28, 2008)'s North American trading session moderately lower in step with losses in CBOT soy complex futures and the firm tone in the Canadian dollar. The Canadian dollar was trading at two-month highs against the US currency.

 

Contributing to the weakness was the lack of fresh exports and steady farmer pricing as farmgate values continue to hold near record levels, which is attracting farmer offerings, cash dealers said.

 

Giving some support was the expectations that Chinese demand for rapeseed will come forward eventually, the late rally in CBOT soyoil futures and friendly technical signals.

 

Routine exporter buying was augmented by crusher pricing. The selling comprised of profit taking by commission houses and steady elevator-company hedge selling.

 

Western barley futures posted losses in light trade, with much of the activity comprised of intermonth spread trading as commercials rolled positions forward ahead of the imposition of position limits on cash month contracts by the exchange, traders said.

 

The weak tone in CBOT corn and the firm Canadian dollar, which makes US feed grain imports cheaper, pressured the market down amid a lack of fresh news.

 

The total barley volume was estimated at 1,069 contracts, up from Tuesday ( Feb 27, 2008)'s 580 contracts, including an estimated 740 contracts involved in the spread trade.

 

Feed wheat was untraded.