Lidea and Agritel, agricultural market news
April 29, 2022
The context for the main cereals is still uncertain. Geopolitics is having a huge part to play in terms of trade and is therefore the driving force for prices. From the economic sanctions imposed on Russia to expectations of production issues in Ukraine, the markets are getting nervous. Furthermore, the period of weather market is open and it too is rocking the boat. From the USA to Argentina via Brazil, conditions are far from optimal, thus maintaining a risk premium on prices.
Limited supply continues to fuel the strong prices. The war in Ukraine is having a huge impact on European and global demand which must be rationed. All vegetable oils are under pressure at a time when concerns are rising about US soya and Canadian canola sowings. Nonetheless, the slowdown in global growth and repeated lockdowns in China must still be monitored. These factors could affect global demand sooner than price rises.