homevideos Newsmarket Newscommodities NewsRabobank expects consolidation in oilseeds market; prices likely to find support
Rabobank expects consolidation in oilseeds market; prices likely to find support
Michael Magdovitz, Commodity Analyst at Rabobank in an interview with CNBC-TV18 shared his views on the outlook for agri commodities going forward.
This year was marked by tremendous volatility and price pressure in the oilseed sector because of the trade war, where China is the largest consumer and the US is the largest exporter of soybeans, Magdovitz said
However, the recent truce between China and the US and the former promising to buy additional soybean is bringing in a bit of support for the market, he said.
On global demand and supply, Magdovitzsaid there is an oversupply in the market and those supplies are almost entirely situated in the US, which means weather issue outside the country could potentially put prices to the upside.
“We do expect that either through cuts in supplies in the US in 2019 or by additional demand from China to satisfy President Donald Trump's request for resolution to this trade war that we will see market rebalance going forward and prices are supported in that respect,” Magdovitz added.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
