Oilseeds News, 27th / Sep / 2024

Rapeseed prices rose at the beginning of the week, partly due to dry sowing conditions for soybeans in Brazil. However, an easing of the situation due to rainfall could cause prices to fall again. Firmer vegetable oil prices and strong demand for US soybeans are also supporting the market. On the cash market, demand for German rapeseed remains calm as Ukrainian supplies cover demand. After an initial rally at the beginning of the week, the Winnipeg exchange saw a consolidation phase in the Carola contracts, which was favored by a weak international market environment. Analysts at the Canadian Agricultural Agency only slightly adjusted the forecast for canola for 2024/25. While the estimate for exports remained unchanged at 7.5 million tons, domestic consumption was raised to 12.2 million tons. Ending season stocks are estimated at 2.5 million tons.

Soybean futures recorded losses on Thursday, ending a previously positive trading phase. Soymeal futures also closed lower, falling between USD 1.10 and USD 1.90 per tonne, while soybean oil futures suffered even greater losses. Overall, the front months were hit the hardest. A key factor was the sharp fall in crude oil prices, which exerted additional pressure on soybean oil futures. In terms of export sales, the USDA reported that 1.574 million metric tons (MMT) of soybeans were sold in the week ending September 19. This was a decrease from the previous week, but still within the expected range of 0.9 to 2 MMT. China was the largest buyer, purchasing 869,700 metric tons, while another 245,300 metric tons were sold to unknown destinations.