US soybeans were able to make gains on Tuesday. In Chicago, the March contract gained 6.75 US cents and closed at 1187.25 US cents/bushel. The May contract also rose and was quoted at 1201.75 US cents/bushel, up 5.50 US cents. Coarse meal also rose by US$ 1.00 to US$ 314.50/short ton for the same month.
Support came above all from hopes of new impetus in trade with China. Market participants are looking ahead to a meeting between US Treasury Secretary Bessent and Chinese representatives in Paris at the weekend. This is seen as preparation for a possible meeting between Donald Trump and Xi Jinping later in the month. This news supported the market to such an extent that the fall in crude oil prices did not have a major impact.
In contrast, the latest WASDE report provided hardly any new fundamental signals. The USDA increased US soybean imports by 5 million bushels, while processing was raised by the same amount to 2.575 billion bushels. As a result, ending stocks remained unchanged at 350 million bushels.
The international picture also remained largely stable. The Brazilian harvest forecast was confirmed at 180 million tons. In Argentina, the USDA lowered production slightly by 0.5 million tons to 48 million tons. Global ending stocks for the current season were reduced slightly to 125.31 million tons.
One negative factor, however, came from the oilseed complex. In Canada, canola futures came under pressure. May lost Can-$ 6.30 on the ICE in Winnipeg and fell to Can-$ 720.10/t after profit-taking and technical selling set in. The market also weakened in Europe. On Euronext in Paris, the rapeseed contract for May fell by €13.00 to €501.00/t. Mixed signals are currently coming from the conflict region surrounding Iran. Although the USA has announced its intention to escort ships through the Strait of Hormuz, the Iranians are currently laying mines to increase the risk of passage. Saudi Arabia is currently fully utilizing its own east-west pipeline, thus creating an alternative to the transport corridor through the Strait of Hormuz, which is having a relieving effect.
