Lidea biweekly newsletter with Agritel
February 17, 2023
The tightness for soya is taking everything along in its wake and is allowing the oilseed complex to hold firm in Europe with significant interest in meals. Oils are no longer as sluggish as they were thanks to unusual exports and lower imports. Seed supply is still high which should nonetheless limit the potential for increase. In the long term, the good acreage in Europe is also likely to reassure traders but the question remains about Ukrainian sunflower and US soya on the eve of the sowings.
The cereals market is evolving against an extremely uncertain backdrop split between macroeconomic factors that are still delicate and an extremely tense geopolitical situation. The euro's recent fall against the dollar is not enough to improve the competitiveness of European cereals given Russia's huge supply and export capacity, and wheat prices on Euronext are struggling to reach the €300/t mark again. Nonetheless, traders are keeping a close eye on the growing conditions for cereals, and the slightest weather incident will provide support for prices.