Report on the last agricultural trends Agritel x Lidea
April 14, 2023
The oilseed market is still extremely sluggish, particularly in Europe. The surplus of seed, thanks to record imports, is bringing pressure to bear on the complex, whilst the support from the soya is gradually dwindling. Crude oil – another potential source of support – is struggling to pass on its strength to European vegetable oils because of a lack of domestic and export demand. Against this backdrop, it is difficult to anticipate any potential increase, but the forthcoming weather market may reshuffle the cards for the new crop. The canola acreage must be monitored in Canada and Australia.
Traders are still skeptical about a real reversal in the bearish trend on cereals. In the short term, cereals are still penalised by the sluggish balance sheets in Europe and record imports. Poor weather conditions for US winter wheat seem to have been taken on board to a certain extent by the market, which is still keeping an eye on the estimates published by the USDA and Conab (for Brazil’s estimates), and on Agreste’s report in France which provides estimates of the acreage to be sown to spring crops.
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