Further rainfall is forecast in the USA and Canada
The prospect of rainfall in the U.S. Midwest over the next two weeks weighed on the U.S. soybean market. For yield establishment, the amount of rainfall in August is crucial. The rainfall situation has also improved in Canadian canola growing areas. But the amounts are unevenly distributed. Some regions have received too much rain and others too little.
Two export deals totaling 501,000t announced by the USDA via its rapid reporting system on Wednesday supported the U.S. market. Analysts expect old crop sales of 50,000-400,000t and new crop sales of 300,000-800,000t ahead of the USDA’s weekly export report.
Rapeseed yields have so far been worse than last year in Germany
European rapeseed harvest is progressing. Initial results from RAPOOL in Germany indicate that crop production is slightly below last year’s excellent results.
Rapeseed trading on Euronext closed with red signs on Wednesday. The most traded November futures fell by EUR 0.03 to EUR 0.75/kg. In Chicago, old crop futures prices gained. The most-traded November future, representing the new crop, closed unchanged at 1,420 ct/bu (471 EUR/t) on the CBoT. Later futures eased slightly.
Rapeseed prices also fell on Wednesday on the cash market. At Franko Hamm, rapeseed for delivery in August was traded at 0.45/kg lower than on Tuesday. Prices ranged between 0.44 and 0.45 EUR/kg in eastern Germany.