Strong weekly US soybean sales are driving futures higher this past week. Chicago soybeans slipped on Friday, but the market remained on track for its first week of gains in a month.
Beans were supported by the latest export news. The USDA confirmed a sale of 130,000 tons to an unknown destination and a sale of 259,000 tons to China. In addition to the weather and global demand, market participants are looking ahead to the presidential election in the USA, which will take place at the beginning of November. If Harris wins, there should be no deterioration in trade relations with China in particular, in contrast to the prospects if Donald Trump wins the race. As with the last candidacy, severe tariffs are expected in the trade dispute.
Demand for soy from China is currently brisk. Canola prices are also benefiting from strong demand. The import ban on Canadian canola to China is causing increasing problems, according to analysts. It remains to be seen which routes the rapeseed will take to the Middle Kingdom. Rapeseed prices on the Matif remain well above the EUR 500 per tonne mark.
ZMP Live Expert Opinion
Rapeseed prices are likely to remain at the elevated level due to brisk demand and the tight supply balance.
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