Global oilseed market analysis on February 8, 2024

Published Feb 8, 2024

Tridge summary

South America is experiencing high temperatures and drought, with Argentina recording 41° in production areas, potentially impacting crop yields. However, forecasted rains could provide relief. Global grain markets are being influenced by the South American harvest, with record soybean production expected to impact global oilseed prices. In Europe, rapeseed production is expected to fall by 7% due to reduced planting, leading to increased imports from Australia and Ukraine. Meanwhile, Brazil's soybean crop forecasts have been reduced by 15-23% due to unstable weather. Paraguay has reached 50% of its soybean harvest with average yields. Bulgaria is resisting the automation of sunflower export licenses from Ukraine, leading to farmer protests, while Poland considers a VAT on vegetable oil imports from Ukraine.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The weather The past week in South America has passed with high temperatures accompanied by drought. Focusing on Argentina, temperatures of up to 41° were observed in large parts of the production areas. Crops will be benefited by next week's forecasted rains in central and southern Argentina, which will be critical to current production as soybeans enter a critical phase of development. Highlights of the week In the last week, rapeseed in Paris recorded serious losses, failing to hold above the psychological barrier of €420/t. Pressure from soybean markets, as well as imports of cheaper sunflower seeds and oil into Europe, ultimately helped push front futures down by €17.5/t. El Nino has not favored major palm oil producing countries in Asia, with crop concerns pushing Malaysia's most traded futures up $24/t for the week. The main driver of global grain markets at this time of the year - soybeans, pressured by the progressing harvest in South America, reported a drop of $6/t. ...

Source: Agroportal