July 3, 2008

 

Canada's rapeseed tracking CBOT soy

  
 

Rapeseed contracts traded on ICE Futures Canada were steady to higher Wednesday (July 2, 2008) morning, playing "catch-up" with the CBOT soy complex after Canadian markets were closed Tuesday for Canada Day, according to people in the market.

 

A Winnipeg-based broker said product values in the US moved higher Tuesday, which should lead to some strength in the rapeseed market Wednesday. He said he thought rapeseed was relatively cheap compared to soy, which should keep the market supported.

 

However, soy are being called lower to start Wednesday, which may limit the potential for any significant advances in rapeseed. He added that a stronger Canadian dollar, and a lack of aggressive demand for rapeseed, could result in a mixed tone in the rapeseed market.

 

From a technical standpoint, the November rapeseed contract is nearing the key CAN$700 (US$690.85 ) per tonne level. The contract has tested the resistance level in recent days, but has been unable to hold above it. The broker thought a move above CAN$700 would trigger some additional buying in the market.
   

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