Free of charge

Cereals and oilseeds: "Prices will continue to decline"

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

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
Feb 9, 2026
NEW DELHI/ATLANTA. Buying interest in US peanuts has declined noticeably, and a large crop is on the way, putting pressure on prices. Meanwhile, high-quality goods are becoming scarce in India.
Grains
Feb 6, 2026
BRUSSELS. Competition is currently fierce for wheat. In the US, the biofuel tax credit is boosting corn. Soybeans have witnessed a rather unsustainable price jump. Canda may have to step up canola exports to Europe.
Oilseeds
Feb 5, 2026
NEW DELHI/ADDIS ABABA. In order to meet demand, the Indian sesame seed market will once again be dependent on increased imports in the coming months. Government regulations are hampering the sesame sees trade in Burkina Faso.
Organic Commodities
Feb 5, 2026
AMSTERDAM. Recalls over salmonella have prompted organic chia seeds to make headlines in Canada. Supplies from South America and Uganda are currently available in Europe.