Soybean & canola futures were about the only grains to garner any joy out of last night’s session. The Chinese are back from holidays and have decided that their government has taxed most imported feed grains out of reach and Trump is working on what is left so they may as well get in and buy as much of what they still can and that is soybeans and soybean meal. The meal is expected to replace much of the feed imports that are being restricted, like USA DDG products.
Argentine rainfall was also a talking point with heavier falls over the weekend and more in the forecast. Be careful how you weigh this one up though, remember the old saying rain makes grain, this may well be the case in Argentina this summer.

This week has a USDA WASDE report, a South American crop update and a big report on Malaysian palm oil. So expect a degree of volatility in the oilseeds markets. Last night saw canola futures move higher on the back of better bean values but our dollar was stronger against the CAD but weaker against the Euro, so potentially some upside there. Strategie Grains also came out with a downgraded canola production estimate for Europe yesterday. Production is now pegged around 21.56mt, back 500kt. Winter kill is the culprit with severe frosting across parts of eastern Europe to blame. It’s probably too early to quantify but that’s never stopped a futures trader from speculating before, spring will tell if the winter oilseeds will recover.