What's new in the agricultural market?
July 22, 2022
The depressed state of palm oil after Indonesia cancelled its plan to roll out B35 is bringing pressure to bear on the other vegetable oils. Soya oil and meal lack competitiveness which is limiting demand and easing the tightness of the balance sheets. Rapeseed oil, however, is benefiting from good demand from the crush industry which is limiting the potential for a fall despite the arrival of rapeseed seed in Europe and good weather in Canada. Sunflower's balance sheets are delicate and leave no room for a problem with the weather. Drought is sweeping rapidly across Europe, however, causing concern about final production potential. This must be monitored closely, as must the talks in the Black Sea which could reshuffle the cards on the sunflower market.
The harvest is in full swing in the northern hemisphere but all eyes are fixed on trade. Given the good sales of US and European crop and the uncertainty surrounding Ukraine, the cards of global trade have been fully reshuffled. The fundamentals are therefore likely to be tight enough to overcome a faltering global economy.