The trading week on the oilseed market has been mixed so far - especially for soybeans, where disappointing export figures and weather-related price pressure set the tone. Prices came under pressure at the start of the week, although export inspections rose sharply to 365,000 tons. The USDA report on crop development had a particularly negative impact. As the week progressed, prices were volatile - supported on the one hand by surprisingly weaker field assessments and on the other by weather forecasts with moderate rainfall in the US growing region. The USDA's weekly sales figures did not provide any relief either: sales from the old harvest fell by 60% and those from the new harvest reached a four-week low. In South America, Brazil remains in focus with high exports, while China is increasingly ordering soybean meal from Argentina - a signal of changing trading patterns.
In Canada, canola futures were under pressure, mainly due to favorable weather forecasts and a firmer Canadian dollar. In the meantime, however, there were also upswings, supported in particular by rising prices for soybean oil and other vegetable oils. In Paris, rapeseed prices were also volatile, ranging from temporary gains in the middle of the week to another setback afterwards. Overall, the situation for oilseeds remains fragile: weather conditions in North America, the development of demand in Asia and the global oil price trend are likely to continue to have a significant impact on market sentiment in the coming weeks.
ZMP Live Expert Opinion
The oilseed market remains susceptible to weather-related price fluctuations. How the weather develops in the US Midwest will be decisive - especially with regard to the sensitive ripening phase of soybeans. Developments on the energy markets - particularly for crude oil and vegetable oils - will also be closely monitored with a view to the rapeseed market, which is suffering from a strong euro. In Canada, the weather in the Prairies will set the tone. Overall, the market is expected to remain volatile - clearer trends are only likely to emerge with the next USDA data and more concrete harvest estimates.
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