Ölsaaten Cockpit, 08.11.2019

Opposing impulses determine the sale of the soybean prices in the current trading week, so that the US quotations ended yesterday's trading day at the equivalent of 305 EUR / t only 1 EUR / t above the previous week's line. Bullish is the hope for progress in trade talks between China and the US. As part of the so-called Phase 1 trade agreement, the Chinese are currently trying to persuade President Trump to abolish further punitive tariffs imposed in September. However, pressure on Chicago prices is fueling the increasing pace of US soybean harvest and soybean seed in South America. Extensive dry weather in the Midwestern United States allows farmers to harvest soybeans in much of the region. According to the US Department of Agriculture USDA, 75% of soybean areas were cleared last Sunday, in line with trade expectations. The crop residue for the five-year cut has thus reduced from 16 to 12 percentage points. Below-average precipitation is forecast for the coming weeks and should allow the US crop to continue to move forward quickly. Recent rainfall in parts of Brazil and Argentina, which accelerate soybean sowing there, is also bearish.Due to the weather, sowing in 2019 started later than usual - now some residue can be caught up, which fuels the optimism regarding a new record harvest in Brazil.