Soybeans continued their recent strength on Tuesday. In Chicago, the March contract jumped 11.75 US cents to 1122.50 US cents/bushel. The May contract gained 12.50 US cents and closed at 1137.50 US cents/bushel. July was also clearly firmer with a gain of 13.00 US cents. March meal rose by US$ 3.00 to US$ 300.80/short ton.
The current WASDE left US ending stocks unchanged at 350 mbu. This meant that there was no immediate impetus from the domestic balance sheet. Internationally, however, the bearish signals predominated. Brazil is now estimated to have a record harvest of 180 mbu, an increase of 2 mbu. Argentina remained at 48.5 million tons. Global ending stocks rose by 1.10 million tons to 125.51 million tons. Increased supply at a global level is generally having a dampening effect on prices, but the market initially focused on buoyant demand.
ANEC puts Brazilian exports in February at 11.71 million tons, 0.29 million tons more than recently expected. This underlines the strong outflow, which at least partially absorbs the additional supply.
The canola market showed a mixed picture. In Winnipeg, canola gained Can-$ 1.60 to Can-$ 667.30/t in March, providing supportive guidance. On Euronext, on the other hand, May rapeseed fell by €1.50 to €487.75/t, providing a slightly bearish counterweight.
