Lidea and Agritel, latest news
July 8, 2022
The oilseed complex is struggling, particularly oils. Even though [palm] oil in Kuala Lumpur is still declining the most, several other factors could bring support for rapeseed and sunflower. The gradual return of demand for biodiesel, good margins for producers, and concerns and nervousness on the US soya market brought by an extremely tight balance sheet, will all be supporting factors over the coming months. Nonetheless, we shall be keeping a close eye on canola production in Canada and Australia which may also ease the global balance sheets.
The pressure on investment funds to sell because of economic uncertainty has caused cereal prices to decline again. To this we can add harvest pressure as the barley and wheat harvests advance in the northern hemisphere. The fundamentals, however, remain delicate. With Ukraine's exports still blocked, Russia looks set to have a record harvest, but there is much uncertainty about the country’s export capacity. At the same time, international buyers are taking advantage of this decline to buy large amounts of wheat.