The Chinese have resumed buying US soybeans but much more is needed to make up for the sluggish US exports since the beginning of the season, said the team.
“The world needs to see China purchasing at least 10MT of US soybeans if prices stand a chance of a recovery,” added the UK based agri-commodity analysts.
In its December WASDE report, the US Department of Agriculture (USDA) increased its expectations for global soybean stocks to 115MT, some +30MT since is first estimate.
Meanwhile, rapeseed continues to price cheaply in order to find demand on the continent amid a swirling sea of soybeans, according to the review.
Despite this, rapeseed fundamentals remain bullish and prices have little reason to fall sharply.
Black Sea and European rapeseed growing conditions, said the analysts, have improved over the last few weeks with crops benefitting from mild temperatures and timely rainfall. In Australia, canola production is at a nine-year low and in Canada production has fallen this year yet exports remains strong EU crushers will continue to find it hard to secure rapeseed in 2019, according to the CRM Agri report.
They said dryness in Brazil is placing crops under stress during critical yield determining phase, whereas, in Argentina, wet weather is hampering crop development. “Despite this, the global soybean crop looks to reach an estimated 365MT which will leave more than comfortable stocks amidst dwindling demand in 2019.”