Better weather in the US is adding pressure to soybean and canola prices

Last week’s heavy rains in the main soybean-growing regions of the United States and the Canadian prairies led to sharp declines in Chicago soybean quotes and canola and canola prices.

According to Crop Progress, the number of U.S. soybeans in good or excellent condition rose 2% for the week to 54% (59% last year). In the coming days, additional rains will pass, which, against the background of moderate temperatures, will improve the condition of crops in the critically important phase of grain pouring.

On the Chicago Stock Exchange, September soybean futures yesterday fell by 3% to $495.4/t, and November futures fell by 2.5% to $478.4/t (-2.3% for the week).

On the Winnipeg exchange, November canola futures fell 2.1% yesterday to CAD780.9/t, or $582.8/t, in line with last week’s and previous month’s levels, as rains washed away speculative price support.

On Paris Euronext, November rapeseed futures fell 1.6% to €466.25/t or $512/t yesterday, adding 4.7% for the week on forecasts of a cut in the EU crop, although the EU market now sees increase in offers of both domestic and Ukrainian rapeseed.

Physical demand prices remain at a low level of 400-420 €/t DAP Germany, 385-395 $/t CRT – Romanian ports and 380-400 €/t CRT – Baltic ports.

In Ukraine, as of August 1, 3.32 million tons of rapeseed were threshed from 1.182 million hectares or 85% of the area with a yield of 2.81 t/ha (2.6 t/ha last year).

Purchase prices for rape with delivery to the Danube ports rose to $360-370/t or UAH 14,600-15,000/t during the week, while demand prices for EXW-elevator and FCA-farming in the western regions rose to UAH 13,300-14,000/t for deliveries under contracts across the western border.

France reduced the forecast of rape yield from 3.44 to 3.23 t/ha compared to July estimates, as a result of which the forecast of rape production in 2023 was reduced from 4.64 to 4.34 million tons, which would be 4% less than last year indicator

Tags: rapeseed, USA, crop condition, Ukraine, prices, France, soybean, Canada