The oilcake market continues to evolve in the opposite direction to that of oilseeds and their oils. While the latter have taken an upward path since the beginning of September, strongly supported by the dynamics of palm oil, the oilcake market has lost ground. The soybean meal delivered to Montoir on its spot contract fell during the last month -44 €/t to return to its campaign lows, at 386 €/t.
This situation is only the result of a logical scenario in which the energy and biofuel sector encourages soy producing countries to crush. At the same time, that of animal demand is less flourishing and more competition, including from seeds directly. Thus, with historically high production in Argentina, Brazil and the United States, soybean meal continues to decline.
However, the latter is gradually gaining competitiveness compared to raw materials. Weekly US export sales once again showed very strong momentum at 2.04 million tonnes this week. In addition to the numerous markets for American seed, there is also the period of climatic risk in South America. If sowing has finally accelerated, it will still be interesting to follow the monthly publication of the American Department of Agriculture (USDA) scheduled for November 8 and its update of the global soybean balance sheet.
Argus Media
