Let's see how evolve the agricultural market worldwide?
April 1, 2022
Seed supply is still the main source of tightness on the oilseed market. Despite a sharp decline on palm following the Indonesian government's decision to regulate the domestic and international markets, the vegetable oil market is still buoyant and is now stabilising at near-record highs in the absence of measures affecting the biodiesel blending mandates in Europe.
The campaign therefore looks set to end on a very tight note in Europe given the lack of Ukrainian sunflower seed and oil, but also given the low supply of rapeseed and canola seed in Europe.
In such uncertain times, the markets are extremely nervous and are reacting to every word uttered by Presidents Zelenskyy and Putin. It is therefore difficult for traders to predict the direction that prices will take in the medium term as so much depends on the conflict in Ukraine. Caution is still, therefore, the order of the day. Note that cereals are likely to remain stable, however, as the Ukrainian situation is ongoing.