Latest news of the agricultural market
November 10, 2022
Geopolitical uncertainty about extending the export corridor in Ukraine have brought some volatility for prices, but Russia's return to the negotiating table is reassuring global traders in the short term. Renewed demand for vegetable oils (particularly palm oil) brought support for the entire oilseed complex last week, with Canadian canola now arriving on the global market. This buoyant demand will continue to raise questions over the next few weeks given that China’s ongoing zero-Covid policy is slowing the country’s activity.
The markets have reacted robustly to Russia’s changing positions about the corridor, but the scenario of continued exports beyond 19 November seems to be increasingly preferred by traders. The focus is now on a possible deterioration in production caused by poor weather in both the northern and southern hemisphere. Lacklustre demand is also penalising international trade, even though, from a macroeconomic point of view, optimism seems to be gaining the upper hand in the USA with crude oil back above $90/bbl in New York.
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