Keep an eye on agricultural news worlwide
February 18, 2022
Stability is still the order of the day for the oilseed complex, with soya and vegetable oils leading the increase. The supply of soya is lower than expected in South America, and Indian demand is likely to remain buoyant for palm which is underpinning prices. Only rapeseed lacks stability, but the European and global fundamentals remain extremely tight for this product which is likely to limit the potential for a decline. The conflict between Russia and Ukraine must still be monitored closely – the sunflower oil market could be particularly affected by it.
The Black Sea situation is causing concern for traders who are keen to protect themselves against potential logistical or supply issues. The market is therefore moving in a price spread whose peaks are been reached thanks to these concerns, but the fundamentals are unlikely to drive prices to the peaks seen last November. Only geopolitical factors or the weather market could boost the bullish momentum.