World: Grain and oilseeds markets to be supported by tight supply & demand balance at least until spring - analysts
In November world markets of grains and oilseeds went up in a fairly straight line till November 25, then dropped very sharply upon the frightening corona news, a huge Australian crop estimate and reported rainfalls in Brazil, H. M. Gauger GmbH said in their December report.
Meantime markets recovered a good part of the losses. The tight supply & demand balance for the crop year is a fact and will support markets at least until spring or early summer in the northern hemisphere. MATIF and CBT prices are higher than in summer of 2020: wheat by 55 – 60%, corn by 75%, soybeans by 50%.
Consumptive buying in North Africa, the Near East and in Turkey is much larger than in past years. Russia announced the introduction of wheat and barley export quotas and stricter export taxes in the New Year. Dryness is reported from the southern U.S. plains, Russia and Argentina; torrential rains have dampened Australian quality, but not production prospects.
On the positive side, crop prospects are altogether good in South America, and winter grains are in good condition in most of Europe.
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