What's the latest news on global agricultural markets?
January 21, 2022
The rains have returned to South America but some of the soya may have been irreversibly damaged. Palm oil production is still falling, with the fall aggravated by heavy rain. Rapeseed is extremely volatile with major fluctuations. The clearance of surplus biodiesel (from the rapeseed oil esterification process) is bringing pressure to bear. Nonetheless, the low supply is limiting the potential for a fall. Sunflower oil is benefiting from very strong demand, which is underpinning seed prices.
Cereals are falling, with most factors having been integrated. The cards of world trade have been reshuffled with trade flows having changed thanks mainly to geopolitical issues. It remains to be seen how the various sources will adapt in order to gain enough market share. The weather in South America will continue to be monitored and could bring some firmness for maize and therefore the rest of the complex.