11 November 2020
- Supply on the spot (2 weeks running window) continues to tighten. It appears to us that the tightness anticipated by our model for many months is finally acknowledged by the on the spot market.
- Our demand view remains bullish. Our earlier assumption for demand weakness towards the end of Q4 is beginning to change. Convergence of bullish spot and forward demand signals can be a powerful price driver. The market seems to agree.
- As suggested in our previous publication, the macroeconomic environment remains supportive of the soybean price. This is largely down to strong economic recovery in Asia. Early indicators for November and December point in the same direction. This surge in demand is partly driven by stronger purchasing power of key end-users of soybean.