Buyers prevailed on the US soybean market at the close of trading on Tuesday. In Chicago, soybeans gained 5.75 US cents for March and closed at 1,155.75 US cents/bushel. Later dates also gained. May futures rose by 6.50 US cents to 1,170.50 US cents/bushel.
Support came from the entire oil complex. Soybean meal rose moderately and was US$1.80 higher at US$314.70/short ton for May, while soybean oil also trended firmer in the front dates. This broad strength within the processing chain stabilized the market and provided additional buying pressure, especially towards the end of the session.
Traders continue to focus on the geopolitical situation in the Middle East. Market participants are keeping a close eye on developments, as possible effects on energy prices and global trade flows also have an impact on the oilseed sector. At the same time, all eyes are on the talks between US and Chinese trade representatives scheduled for mid-March in preparation for a meeting between the presidents at the end of March. The relationship between the two countries remains a key factor for the soybean market.
Other oilseed markets were also friendly. On the ICE in Winnipeg, canola for May rose by Can-$ 7.70 to Can-$ 696.10 per tonne. In Europe, rapeseed on Euronext rose by €5.00 to €499.00/t for May. The parallel upward movement in the international oilseed complex also gave soybeans an additional tailwind. The high energy prices have now also reached consumers in the EU. Sharply rising prices at the pumps are now also spreading along the value chain. A quick end to the conflict in the Middle East is not yet in sight. The USA is talking about several weeks, but has not yet revealed a strategy for regime succession. International discussions are underway on how to reopen the Strait of Hormuz and ensure safe passage for shipping.
