The CBoT soybean prices have broken their downward trend after Christmas. Reason for that are the weather conditions in South America. In Argentina, there was less rainfall than needed to prepare the dried-up soils for sowing soybeans. After the Christmas days, it was clear that the rainfall was not enough to expect optimal yields. In some cultivation regions, no rain had fallen at all. Meanwhile, China continues to buy large quantities of soybeans in the US on a daily basis. However, exports are likely to become more difficult as of 1 January, as China is tightening acceptance conditions for beans from North America. So far this year, however, US exporters have been able to deliver significantly less soybeans to China. Perhaps the tide is now turning in favor of the United States, because in Argentina's main hub for grain and oilseed Rosario, the experts are striking after a COFCO loading terminal exploded with one dead and many injured. In this country, dealers expect rapeseed imports from Australia and Canada as well as cheap biodiesel from Argentina in January.
Text: HANSA Derivatives Trading GmbH
