What's new in the agricultural market?
March 17, 2023
Last week, reports confirmed soybean production losses in South America, mainly in Argentina but also in Brazil. Shortages in soya complex contrast with the strong supply of rapeseed and sunflower in Europe and throughout the world. Record production in Australia and buoyant rapeseed exports in Canada continue to put prices under pressure.
The sluggishness of the wheat balance sheet in the short term is adding to the very uncertain economic context. The abundance of Russian and Australian wheat remains the key factor. Despite a very tense political situation in the Black Sea with doubts about an extension to the export corridor, the cereal complex is still on a bearish trend. As winter draws to a close in the northern hemisphere, crop condition will be the key factor to underpin wheat. The focus will soon be on the corn balance sheet. Brazil's corn production will have to ease the balance sheet which looks set to be tight.