Like corn, oilseeds made fresh yearly lows last week before finding support from the general market place and positive signs in China. Dalian/China futures traded limit up on news the government will be buying domestic soybeans for their reserves. Furthermore, the recent massacre in the bulk ocean freight market has not been as evident in the bulk tanker market, meaning in comparison, it is more expensive to ship veg-oil than seeds compared to six months ago. This should encourage more imports of seeds and beans for crushing and further support the soft seeds. At current canola price levels we expect that exports to China will flourish. Numbers suggest that crop year to date China has already secured 750,000 mt. from Canada.

Local forward cash prices for Canola have rallied in the face of a falling $A over the weekend whereby prices bounced as high as $39 at Port Adelaide ($615/t). Geelong jumped by $36 to $645/t while Newcastle closed up $35 to $639/t. Kwinana rallied $27 to $597/t.