Political tensions between the US, Canada and China holds in the uncertain markets of oil

China enforces the prohibition of imports of soybeans from the United States and canola oil from Canada, as a lever of influence in the political and trade disputes.

as a Result of suspension of soybean imports from U.S. prices for the year fell by 20-25% and continue to decline amid uncertainty over future relations between the US and China. American farmers were planning for 7-8% reduction in acreage under soybean, but may even have to increase the delay of sowing of spring wheat and corn.

the July soybean futures in Chicago after the collapse on Monday yesterday recovered to 306,1 $/t, but remain at a level close to 5-month low.

As of 6 may in the US planted with soybeans 6% of areas, compared to 14% on average for 5 years.

the Brazilian oilseed processors Association (ABIOVE) has increased the forecast of soybean production to 117.9 million tons, but lowered its assessment of exports of 70.1 to 68.1 million tons because of the spread of ASF in China, the amount of soy purchases will be less than predicted in March.

carry-over stocks of canola in Canada increased by 10.5% to 10 mln t after a stop of export to China. On the background of reduction of prices it may lead to a reduction in acreage under Canalou in Canada. Canola futures yesterday rebounded to 439 CAD/t or 326,5 $/t, which is the lowest level in 2015.

the canadian government has announced financial support to farmers suffering from the refusal of China to buy canola. According to agriculture Canada, the government will increase the maximum amount of lending to farmers at the appropriate Federal program with 400 thousand CAD (300 thousand $) up to 1 million CAD (745 thousand $), and the amount of interest-free loan will increase with 100 thousand CAD (74,5 thousand $) to CAD 500 thousand (370 thousand $).