December 12, 2007

Canadian rapeseed futures move higher amid steady demand

Winnipeg Commodity Exchange rapeseed futures moved higher overnight with some of the advances coming from steady commercial demand, market watchers said.

Advances were also stimulated by the USDA's small cut in ending stock projections for the various commodities.

Rapeseed futures were expected to continue their upward price movement with market participants expecting another US$1.00 per tonne to be added onto the gains already seen in most contracts when CBOT futures opened.

Strength in rapeseed was also coming from weakness in the Canadian dollar and steady demand from the domestic sector, traders said.

Support in rapeseed was also being derived from the dryness concerns in the soy growing regions of Brazil and Argentina. Strength in Malaysian palm oil futures overnight were also seen as supportive.

Volume in the overnight activity was described by brokers as light.

Activity in western barley and feed wheat futures overnight was extremely quiet. Traders felt WCE feed grain values would get a small upward boost when CBOT wheat and corn futures open higher. The absence of fresh demand was seen tempering the upward price action, brokers said.

At 8:46 a.m. CST, 56 feed wheat contracts had traded while no western barley futures had changed hands.