The fourth edition of Paris Grain Day welcomed 250 international grain sector players and experts. Their discussions of the drivers of the agricultural raw materials market concluded that the outlook for 2020 is very slightly positive. According to the experts in attendance, three key aspects of the market are worth monitoring in 2020:
- For common wheat, the Black Sea region remains a key competitor to French producers. Participants emphasised the current stranglehold held by the state bank VTB on the Russian market.
- For corn, weak demand on the US market signals little prospect of an uptick in prices.
- In light of its agricultural and logistical development, Brazil should remain a major exporter of soya to China, despite the new trade agreement between China and the USA. However, it will be worth watching changes in Chinese demand in the wake of the African swine fever and coronavirus outbreaks because the country will be upping its demand for oil at the expense of oil cake.
Source: Paris Grain Day