June 24, 2008

Canada's rapeseed futures down as favourable conditions emerge

Rapeseed futures traded on the ICE Canada platform were lower Monday in light to moderate activity as the downward price slide of the CBOT soy complex was seen to negatively influence rapeseed values, market watchers said.

Favourable conditions in Western Canada also helped to pressure prices down as did news that Argentina's soy exports, suspended by farmers' strikes, may soon resume, brokers said.

The pace of domestic processor buying was said to have slowed significantly and that also helped to undermine contracts.

Rapeseed's downside potential was limited however, by the absence of producer deliveries into the commercial elevator system, according to brokers.

Further underpinning values was spillover positive momentum tied to rapeseed sales conducted last week between Canada and Dubai. Routine exporter buying also tempered rapeseed's price slide, traders said.

As of 11:59 a.m. EDT, 6,517 rapeseed contracts had changed hands. Of that amount, roughly 3,700 were spread-related.

Meanwhile, western barley futures were unchanged to lower amid very thin trade. As of 11:59 a.m. EDT, only 46 contracts had been traded. Commercials were the featured participants.