Although the uncertainty is far from behind us, the last weeks have shown more and more losses throughout the entire economic landscape. Next the oils and oilseeds complex; stocks, crude oil, and (crypto)currencies have shown considerable losses over the last two weeks. The reasons behind these decreases might vary per market, but the general bearish trend has undoubtedly been similar.
For the vegetable oil markets, the price decrease has mostly been caused by increased supply and higher production estimates. As expected, increased Indonesian exports cause an increased supply of palm and palm kernel oil. While increased production estimates due to additional sowing in some regions are causing the expected supply of soybean and rapeseed to be higher and possibly not tight as they have been throughout last season.
Although the markets are showing a slightly more bearish sentiment at the moment, we have seen that it does not take much before this might be completely different, keeping people cautious.