Brazil and Argentina account for 65% of total global soybean meal exports.
Deteriorating conditions in South America have been a growing cause for concern, worsening over the holiday period with a clear impact on crops having already being realized and lower crop production estimates being forecast as a result, although the full extent of the damage is unlikely to be reflected in the January WASDE released next week by the USDA, said the UK analysts.
Southern Brazil and northern Argentina are the worst affected, they reported.
“Our outlook remains bullish for soybeans and meal unless we see rains in the very near future in Brazil and Argentina, neither of which are forecast in the critical areas.”
Hike in palm oil prices
Malaysian crude palm oil (CPO) price rises are part of a trend in the wider vegetable oil market, according to the CRM Agri oilseeds market report.
Labor shortages have constrained supplies out of the second largest palm producing nation, while, more recently, a typhoon delivered one month’s worth of rains in a single day, adding to the supply concerns.
The shortage in vegetable oil availability globally is acutely visible in the rapeseed market, said the oilseed market specialists.
“This spot rapeseed market has now breached €800/tons (US$911/tons) with major exporter ending stocks at record lows and higher energy prices adding to demand as biodiesel demand increases.”
Fears over the Omicron variant have subsided somewhat, noted the team, and this, they said, has helped to support crude oil prices back above US$80bbl.
