The soybean markets were significantly firmer at the end of the week. In Chicago, the September contract climbed 14.75 US cents to 1,022.25 US cents/bushel. The November contract also rose sharply by 14.00 US cents to 1,042.50 US cents/bushel. For the week as a whole, the front month recorded a hefty gain of 54.50 US cents. Soybean meal fell slightly, losing US$ 0.90 to US$ 283.40/short ton for September.
The rally was mainly driven by the NOPA crush report: With 195.7 million bushels of soybeans processed, the association members reported an all-time high for July. This corresponds to a year-on-year increase of 7% and exceeded all expectations. The soybean oil market also benefited: September was up 47 points on the CBoT. Oil stocks fell by almost 15 percent year-on-year.
Despite strong domestic demand, the export outlook remains subdued. At 51.115 million tons, total sales for the current marketing year are exactly in line with the USDA forecast, but below the usual average of 103 percent. At 4.712 million tons, the new harvest is 19.7 percent below the previous year's level. This remains manageable, mainly due to a lack of Chinese purchases.
Uncertainty is increasing on the canola market in Winnipeg: Although the November contract was able to gain Can-$ 6.40 to Can-$ 660.90/t, the new tensions with China are still causing uncertainty. In Paris, on the other hand, rapeseed prices fell slightly. November lost €2.00 to €473.75 per tonne.
