Trade wars, unfavorable weather conditions, coronavirus pandemic and following high inflation resulted in formation of the unique price situation on the agricultural commodity market, declared the Vice President of StoneX Group, Matt Ammermann within the online conference Sunflower Seed&Oil: Trade. Barriers. Competition on May 12.
“I suppose that we will enter the new season with the unique price situation on the commodity market. The growing prices change the usual trade with agricultural products and that is typical. This season, the French wheat flowed to the US, Russian wheat to Mexico, Argentinian corn to the US and Brazil, Brazilian soybean to the US, Ukrainian rapeseed to Canada, etc. Therefore, the market really reacts on the notable price growth. The situation we see today is abnormal”, - he said.
M.Ammermann thinks that the farmers, in their turn, will react on the price increase and the market changes it causes.
As to the sector of vegetable oils, the expert pointed out the expected increase of production of oilseeds and oils amid currently low stocks.