Rising oil, Canada rains lift rapeseed to 15-month high
• Brent crude rises above $98/Bbl, on fresh Middle East hostilities
• Rapeseed rises through €530/t resistance level, helped by Canada worries too
• Soybeans find, temporary, support from China buying talk
• Corn and wheat sag, weighed by harvest pressure
Oilseeds made headway, even as cereals faltered, as soybeans gained support from rumours of Chinese purchases from the US, while rapeseed and soyoil got a lift from rising crude oil.
Brent crude futures added 2.0% to return above $98.00/Bbl, buoyed by fresh hostilities in the Middle East.
Iran fired missiles at Bahrain and Kuwait and, killing one person and injuring dozens, according to Kuwaiti authorities and state media, while the US made military strikes on Iran’s Qeshm Island.
There was no sign of progress on negotiations to end Iran-US hostilities.
The headway in crude oil helped Chicago soyoil futures add 1.1% to return close to the much-watched $0.80/lb mark, July-26 basis.
In Paris, rapeseed futures for August-26 gained 1.1% to break above resistance at €530/t and touch the highest level in 15 months, spot basis.
Rapeseed was also helped by a 2.6% gain in Winnipeg canola futures for July-26 to the highest for a spot contract since September 2023, as rains slowed sowings in the Prairies - again.
Chicago soybeans found some early buying too, returning temporarily above their 200-day moving average in Chicago, for July-26 delivery, amid talk of China returning to buying US exports of the oilseed.
USDA Under Secretary Stephen Vaden was reported as telling a conference that China had begun placing orders for US soybeans under its, alleged, commitment to buy 25Mr from the US in 2026, and the next two years.
However, soybeans sagged later on under pressure from cereal markets which continued to sag under harvest pressure. For wheat, the US 2026/27 winter crop harvest is underway, while for corn both Argentine and Brazilian farmers are harvesting 2025/26 crops.
Without obvious signs of demand to mop up extra supplies, corn futures for July-26 traded 1.4% lower in late morning deals in Chicago.
Chicago soft red winter wheat dipped by 2.5%, before encountering support at its 100-day moving average.
In Europe, Paris milling wheat for September-26 shed 0.6%, while London feed wheat for November-26 lost 1.0%.
