Rapeseed futures for November may gain to a record 490 euros ($612) a metric ton in the next two weeks after closing above the five- and 10-day moving averages, according to technical analysis by Starsupply Commodity Brokers.
The contract may extend the 2.9 percent increase this month on NYSE Liffe in Paris after crossing the moving averages last week, said Arnaud Saulais, a broker at Starsupply in Nyon, Switzerland. The oilseed for November delivery settled at 478 euros yesterday. The five- and 10-day measures are currently at 471 euros and 466.63 euros, respectively.
“The market has crossed different levels, the 10-day and the five-day” moving averages, Saulais said by phone yesterday. “It’s very positive for the market. U.S. soybeans were going up too,” which also supported rapeseed, he said.
Rapeseed competes with soybeans for use in cooking oil, biofuels and animal feed. The November rapeseed contract has climbed 19 percent this year, almost matching the advance in November-delivery soybeans on the Chicago Board of Trade. Those beans rallied as dry weather hurt crops in South America and the U.S. and as Chinese demand increased.
Rapeseed output in the European Union, the largest producer, may be 17.9 million tons in the 2012-13 season, down 6.4 percent from a year earlier, after a cold snap this year, U.S. Department of Agriculture data show.
In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.
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