News in oilseed and cereals complex
May 12, 2023
Prices across the entire complex are under pressure from crude oil and vegetable oils. At the same time, soy supply looks set to be more comfortable in the USA over the coming months, thanks to a slowdown in export sales and rapid progress with the sowings. It is a similar scenario for rapeseed and sunflower in Europe where good imports and good forecasts for the new campaign are putting prices under pressure. In the shorter term, discussions about extending the export corridor in Ukraine are still a source of volatility.
With stocks high in Europe, the market currently seems confident of a favourable outcome to the negotiations about the corridor in Ukraine. The favourable weather conditions and the uncertain economic backdrop are the dominant factors at the moment, putting prices under pressure. Yet the geopolitical risk premium will remain unless an agreement is reached before the 18 May deadline, and in the fields, the weather market is only just beginning for the new campaign.