Argentine competition weighs on soy

The prospect of a slightly higher canola harvest in Australia and good harvest conditions in Canada weighed on rapeseed prices on Euronext/Matif yesterday. The front month of November lost EUR 7 per tonne and ended Tuesday trading at a closing price of EUR 605.50 per tonne. The Australian forecasting institute Abares estimates the country's canola harvest at around 6.6 million tons. This is about the same as last year, but more than the average for the last five years. Canola also went south in Winnipeg. The November date lost 18.50 Can-$ and converted into euros costs 604.56 euros per ton. Soy was also down on the CBoT. As reported yesterday, the government in Buenas Aires plans to grant its soybean exporters preferential exchange rates to the peso. US dealers fear additional competition as a result. The forthcoming harvest in the USA put further pressure on the market. Market participants are expecting new insights into the possible harvest from next week's WASDE. Private analysts such as StoneX recently raised their earnings forecasts slightly. Export shipments were higher than the previous week, limiting losses.