The soybean market got off to a bullish start at the beginning of the week, with prices on the CBoT initially rising by up to 3.5 US cents/bu. However, the January contract remained below 1,000 US cents/bu. Soybean exports in the week to November 21 were 2.102 million tons, an increase of 33.5% compared to the previous year, although there was a 7.3% decrease compared to the previous week. Demand from China was particularly strong, with 1.23 million tons going there. Sowing in Brazil is almost complete and the weather is currently optimal. On Tuesday, however, Donald Trump's announcement to increase tariffs on imports from Mexico, Canada and China caused uncertainty and depressed prices. The January contract fell to 983.50 US cents/bu.
The soybean market recovered on Wednesday, with the January contract rising to 988.75 US cents/bu. Again, positive export figures were reported, including a private sale of 132,000 tons to China. Official figures will follow later this week due to the Thanksgiving holiday.
The rapeseed market initially showed stable trends, with the price for the February contract on Euronext rising to €514.25 per tonne. However, Canadian prices also depressed the market here, as Trump's threat of tariffs on Canadian imports caused uncertainty. In Winnipeg, canola futures fell by Can-$12.70 to Can-$580.30/t, while Euronext contracts fell to €506.5/t. Despite these setbacks, many are hoping for a quick recovery.
Overall, the oilseed market remains characterized by geopolitical uncertainties, while positive export data and good harvest forecasts from South America are providing support for the market.
ZMP Live Expert Opinion
The oilseed market is being influenced by conflicting developments. Strong export figures, especially to China, are supporting prices, while uncertainties caused by Trump's announced tariffs on imports from Canada, Mexico and China are weighing on the markets.
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