The soybean market ended January with losses. In Chicago, the March contract was down 8.00 US cents at 1064.25 US cents/bushel. May lost 8.75 US cents and closed at 1077.00 US cents/bushel. July also trended weaker and confirmed the overall bearish picture at the end of the week. March meal also lost US$ 2.10 to US$ 293.60/short ton.
From a trader's point of view, the demand side remained the main drag. As at January 22, US export sales totalled 33.85 million tons, down 20 per cent on the previous year. At the same time, only 79% of the USDA export forecast has been sold, while the long-term average at this time is 87%. This sluggish pace of sales is weighing noticeably on the market. Additional restraint comes from the upcoming USDA Crush Report, in which 230.4 million bushels are expected to be processed in December.
Internationally, South America is sending mixed signals. In Argentina, the Buenos Aires stock exchange rates 47% of soybean stocks as good to very good. This is well above the previous year's level and looks rather bearish from a market perspective, even if the figure is below the previous year's level.
Other oilseeds also showed weakness. In Winnipeg, canola barely made any headway, with the March contract losing Can-$ 0.70 to close at Can-$ 648.00 per tonne. On Euronext in Paris, rapeseed fell, with the February contract dropping by €5.25 to €472.75 per tonne.
