October 1, 2008

 

Canadian rapeseed falls on weak US soy
 

 

Grain and oilseed futures at ICE Futures Canada closed Tuesday's session lower as rapeseed was pressured down by the weakness in CBOT soy complex futures, brokers said.

 

Rapeseed saw good volumes of trade with much of the activity comprised of intermonth spreading by index funds and commercials.

 

The total rapeseed volume was estimated at 17,219 contracts, up from Monday's 14,746 contracts, including an estimated 13,696 contracts involved in the spread trade.

 

Rapeseed had been mixed in the overnight market turning down in the early morning as the USDA issued a bearish grain stocks report for soy. Rapeseed continued to trade lower as the North American trading session got underway as the CBOT soy complex dropped sharply. Rapeseed ended the session lower.

 

Rapeseed was also pressured by the advancing harvest and expectations that rapeseed production in could be as high as a record 12 million tonnes. Sluggish demand and the tight global credit situation, which has sidelined potential rapeseed buyers, also prompted selling, traders said.

 

However, the very weak Canadian dollar, slow farmer selling, and a rebound in equity and crude oil markets also supported prices.
   

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