June 26, 2008

Canadian rapeseed contracts recover after bearish report  

Rapeseed contracts traded on ICE Futures Canada were mostly higher in overnight activity, showing some recovery from Tuesday (June 24, 2008).

After falling in response to a bearish acreage report on Tuesday, the rapeseed market was finding some support from expectations for of a stronger soy market on the CBOT, according to a Winnipeg broker.

He thought tensions were already starting to build ahead of next week's USDA planting report, which is expected to support soy and in turn rapeseed.

However, the broker expected rapeseed would lag behind soy still. Given the record area planted to rapeseed in Canada he commented that "if conditions were any better, it would be ugly."

On Tuesday, Statistics Canada estimated Canadian rapeseed acres at 15.8 million acres, roughly a million acres above previous estimates.

However, the StatsCan barley acreage number should remain supportive, as the crop should be considerably smaller than originally thought.