Soybeans lead the market higher in the USA last night. With beans up 26.5c/bu ($13.20/t) it rolled through the oilseed market and pulled canola futures higher. Nearby ICE canola was up C$6.70 by the close. In Paris rapeseed futures also closed higher, gaining €2.25 / ($3.24) tonne.
Good weekly export sales out of the US drove the soybean market higher. The punters are thinking that the USDA targets might now be a little under the mark and US bean sales will exceed their expectations. The old saying of “where beans go, canola goes” is pretty well on the money so watch for improvements in local prices today.
The stronger physical market saw the funds buying in their speculative short positions thus adding volume to the soybean pit and pulling prices higher. Market analyst do expect to see the high for soybeans come in around this time of year before the holiday season gets going. Keep this in mind for your canola marketing program.
Wheat futures in the states found support from expected lower acres in the US. Dry weather across parts of the Midwest is expected to result in lower sown acres of winter wheat and a poor start to the HRW season before entering the winter dormancy period. Weather across western Europe is favourable while the Black Sea states are a little drier than they would like to be.