The soy complex is reacting sensitively to the tensions in the Middle East. Soybean futures fell by 9 to 15 US cents over the course of Monday. The July contract closed at 1058.60 US cents/bushel. Soybean meal also lost ground for July and was 1.70 US cents lower.
The weakness of soybean oil, which recorded losses of 135 points, had a particularly negative impact on the market. One of the reasons for this was a sharp fall in the price of crude oil of USD 6.70, triggered by geopolitical tensions between the USA and Iran. Following a US air strike on Iranian nuclear facilities, Iran reported a missile attack on a US base in Qatar - albeit without damage, as the US side had been informed in advance. As a result, the price of oil fell sharply as Iran's response was extremely weak, contrary to some expectations. This gave rise to hopes that the conflict would not escalate any further. The plans to close the Strait of Hormuz are also off the table for the time being.
In addition to these geopolitical uncertainties, USDA credit ratings for US soybean stocks remained stable at 66% in good/excellent condition. At 96% sown and 90% emerged, the level of development is in line with the five-year average.
On the export side, there was a clear slowdown: USDA export data reported a low for the current marketing year at just 192,890 tons, down 13.7% from the previous week and almost 45% below last year's figure. The main buyers were Mexico and Germany.
Canola was also affected by the sharp fall in the price of crude oil and lost a whole Can-$ 22.00 to Can-$ 721.60 per tonne on the ICE in Winnipeg in July. Rapeseed also slipped back below the €500 mark on Euronext, losing €6.25 to €499.00 per tonne in August.
