The latest seeds market insights with Lidea & Agritel
September 30, 2022
The weak demand for oilseeds is driving vegetable oil prices down sharply, and rapeseed's fundamentals will not reverse the trend. Nonetheless, the power struggle between oilseeds and cereals is maintaining the stability in the medium term, hence the recent rally on Euronext rapeseed. In the longer term, renewed demand will be required to provide more support, without which the markets will not maintain their current price levels.
The markets are reacting to the increase in geopolitical tension. The ensuing uncertainty is preventing traders from adopting clear positions. Given this stability, the faltering global economy is reminding us that consumption may fall noticeably in the medium term, which we can already see on the crude oil market with prices below the $80/barrel mark. In terms of fundamentals, the various balance sheets are known, so it will be macroeconomics and geopolitics that will be calling the shots in the medium term.
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