April 26, 2012

Canada rapeseed jumps nearly contract high on soy crop damage

As growing concerns about drought and frost damage to South America's soy crops boosted oilseed prices, Canada rapeseed futures jumped to a nearby contract high on Wednesday (Apr 25).

Market shrugged off a case of mad cow that was detected in California. Rapeseed meal is a key feed source for dairy cows in that state.

May rapeseed gained US$5.00 at US$632.70 per tonne (1.1 tonne) on volume of 519 contracts at 8:40 a.m. CDT (1340 GMT). Hit contract high.

July rapeseed rose US$5.40 to US$625.90 per tonne on volume of 866 contracts. New-crop November, which is the month with the biggest open interest, gained US$4.50 to US$583 per tonne on 1,258 contracts.

November's gain lagged nearby months after Statistics Canada forecast record-large rapeseed acreage on Tuesday. Traders see rapeseed up US$4-5 at Chicago Board of Trade open.

CBOT soy called to open up US$0.25-0.28 US per bushel as forecasters ratchet down South America's crop estimates.

MATIF August rapeseed gained 0.9% at 8:35 a.m. CDT (1335 GMT).

The Canadian dollar was trading early at 0.9840 against the US dollar or US$1.0163, up from its Tuesday finish at US$0.9880 against the US dollar, or US$1.0121.

US light crude oil rose 0.2% early at US$103.80 per barrel.