Aside from the 350,000 tons of Brazilian soybeans shipped to the U.S., traders will need to watch the influx of Canadian rapeseed (canola) into the country. After Canada’s record harvest in 2013, record amounts of Canadian canola have been shipped to the U.S. toward northern U.S. crushers because of firm processing margins. The inflow is expected to produce record output of canola meal and oil which will likely steal market share away from soy for the remainder of the 2013/14 crop year. After one of the biggest soybean harvests in U.S. history last year, traders oversold the crop to overseas buyers leaving domestic processors and crushers with tight supplies. Some processors shipped in soybeans from Brazil, but since most crushers have multi-seed processing ability, crushers in the northern U.S. are taking advantage of Canada’s excess supplies of canola which can be easily trucked in or shipped in on rail. Over the coming months it is possible that demand for soybeans in these northern regions will be declining.
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