The tariff package passed by US President Trump weighed on the soybean markets. The May contract for soybeans on the CBoT lost 18.00 US cents to 1,011.50 US cents/bushel (€336.43/t), while soybean meal rose slightly. Fears of possible Chinese counter-tariffs and weaker USDA export bookings (-9% compared to the four-week average) dampened market sentiment. Analysts expect Brazil to gain market share in soybean exports.
Canola, on the other hand, benefited strongly. The May contract on the ICE in Winnipeg rose by Can-$ 9.40 to Can-$ 635.90/t. Canada was spared US tariffs, meaning that duty-free exports to the USA are still possible. In addition, the US ban on imports of used cooking oils from China is increasing demand for canola oil. Nevertheless, rapeseed was unable to benefit on Euronext in Paris and fell by €7.50 to €517.25 per tonne.
ZMP Live Expert Opinion
The markets developed differently. While canola is benefiting from the trade regulations and is in greater demand, the soybean market remains under pressure. The outlook for soybeans therefore remains rather bearish, while canola could provide bullish impetus in the short term.
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