Cereals and oilseeds: "Prices will continue to decline"

February 28, 2020 at 3:58 PM , Der AUDITOR
Play report as audio
00:00
00:00

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
Apr 7, 2025
NEW DELHI/ATLANTA. Indian peanut exporters are currently facing particular challenges, and farmers are already drawing the consequences. The demand for US peanuts has decreased after Trump's tariffs.
Grains
Apr 4, 2025
BRUSSELS. Trump’s new round of tariffs has adversely impacted wheat, corn and soy. Yet, the story is totally different for canola.
Oilseeds
Apr 3, 2025
NEW DELHI/BEIJING. The Indian sesame seed market is still characterised by low trading activity. However, the first quantities from the new crop are expected to arrive on the markets from mid-April.
Oilseeds
Apr 3, 2025
OTTAWA/ASTANA. Trade differences and tariff disputes would actually be a good basis for Canadian farmers to grow more flaxseed this season. However, Agriculture and Agri-Food Canada expects a different development.