Oilseeds News, 21.03.2025

On Thursday, the market for soybean contracts for the new harvest recorded only small gains of up to 5 cents in the front futures. Soybean meal futures also posted losses, while soybean oil futures gained during the day. The USDA report on export sales showed that only 352,580 metric tons of soybeans were sold in the week of March 13, 2024/25, which is less than the 0.4 to 0.9 million metric tons estimated by market participants. This represents a 5-week low and a decline of 28.6% compared to the previous year. China was the largest buyer with 269,900 tons, while Taiwan purchased 60,000 tons. Sales of the new crop amounted to only 100 tons, which was below expectations of 0 to 50,000 tons. Soybean meal saw a decline with a total of 182,243 tons, below market expectations of 140,000 to 470,000 tons. This was the lowest level in three weeks. Bean oil sales totaled 34,179 tons, which was in the mid-range of expectations of 15,000 to 60,000 tons, but also a 3-week low. A USDA Foreign Service report predicts that China's import demand will increase from the current 104 million tons to 106 million tons in the 2025/26 season. At the same time, however, the report warns of a possible decline in demand as consumers increasingly consume less pork and switch to poultry and seafood instead.

The recent upward movement in canola prices came to an end shortly before the weekend. On the Intercontinental Exchange (ICE) in Winnipeg, the May contract fell by Can-$ 11.50 to Can-$ 572.70 per tonne. In particular, the news that China could introduce trade tariffs of 100 percent on various canola products caused uncertainty and made market participants wait and see. However, due to the lower prices, market participants expect business to pick up. On Euronext in Paris, on the other hand, rapeseed prices defied the negative overseas cues and recorded an increase. The May contract rose by €5.75 to €492.00/t. EU rapeseed is currently benefiting from China's announced tariffs on Canadian canola.