Free of charge

Cereals and oilseeds: "Prices will continue to decline"

February 28, 2020 at 3:58 PM , Der AUDITOR
Play report as audio

FRANKFURT. In the past few days, cereals and oilseeds have experienced downright price slumps on the stock markets. The effects of the Covid-19 epidemic are, however, also affecting smaller commodities.

Speculators are withdrawing from the markets, which has caused the prices of cereals and oilseeds on the CBOT to fall dramatically in recent days. Most people who trade on the stock exchanges are not interested in physical deliveries. The current uncertainty is therefore prompting these investors to move away from food commodities and towards other value investments such as gold. Market players reckon that investments will increase again once the situation eases. Nevertheless, it should take a while before that happens. "Here in Europe, we are only at the beginning of the epidemic. For the time being, it can be reckoned that prices will continue to fall over a longer period of time," one trader states.

For products such as sesame seeds, prices are directly linked to demand from China. The Chinese market obtains a large part of its unhulled sesame from African countries. At present, however, demand has collapsed. Since large quantities of sesame seeds are available in the African growing countries thanks to good harvests, prices are coming under pressure. To keep up with the competition, Indian sesame seed traders were also forced to cut their export prices significantly this week. However, market players tend to expect stable markets in the long term.

View related articles

Go to the News Overview
Nuts
Dec 8, 2025
NEW DELHI. Indian peanut growers are currently facing a number of difficulties, including oversupplied spot markets and financial problems. They are calling for more help from the government. As a result, prices have only recovered slightly.
Grains
Dec 5, 2025
BRUSSELS. European wheat has only slightly recovered. Confusing White House Communications over the deal with China have dealt US soybeans a heavy blow. Corn exports are picking up in Brazil. Rapeseed futures have dipped.
Oilseeds
Dec 4, 2025
OTTAWA/ASTANA. This season's good crop results mean that traders now want to quickly sell off their old stocks to make room for the new crop. EU countries have increased their flaxseed imports from Kazakhstan by more than 50% compared to last year.
Oilseeds
Dec 4, 2025
NEW DELHI/BEIJING. Unfavourable weather conditions are delaying sowing for the Rabi harvest in India. Demand is currently relatively high in China, but buying interest is only leaving a small dent in the abundant stocks.