July-16 Chicago soybean futures made strong gains as the market was boosted by further confirmation of crop damage in Argentina. Settling at 1034.6 US¢/bu.
Canola futures followed soybeans closing CA$510.5/t for the week.
The fallout from flooding in Argentina continues to buoy soybean markets. Soybean prices gained following further confirmation of crop losses in Argentina and the US reported strong soybean export sales for the time of year.
An estimated 0.79Mha of Argentine soybeans have been lost due to the heavy rain in April according to the Buenos Aries Grain Exchange (BAGE). On top of earlier losses of 0.75Mha caused by previous weather issues, over 7% of the planted area has now been lost. Though BAGE maintained its output forecast at 56Mt, the latest report did not rule out further adjustments, with quality and harvest concerns affecting a further 0.7Mha.
Drier weather last week allowed the Argentine soybean harvest to progress, with 42% of the area now harvested, up from 24% a week ago. However this is still behind the 69% complete a year ago (BAGE)
Canadian canola stocks were reported last week at 7.49 million mt, down 10% year on year, reflecting a smaller crop and positive exports. Planting of the 2016 crop is ahead of average in key provinces.
Australian canola production could reach 3.3Mt in 2016/17. This would be 10% higher than the 2015/16 crop.
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