Less encouraging for corn and soybean futures, the oil market faces the prospect of a “super glut” next year, the chief economist at one of the world’s largest commodity traders warned.
New drilling projects and slowing demand growth will likely keep pressure on already depressed crude prices in the year ahead, said Saad Rahim, chief economist at Trafigura, in remarks Tuesday accompanying the trading house’s annual results, the Financial Times reported.
“Whether it’s a glut, or a super glut, it’s hard to get away from that,” Rahim said.
Brent crude, the global benchmark, is down around 17% so far in 2025, headed for its worst year since 2020. Low crude prices can dent demand for corn and soybeans, making ethanol and biodiesel less attractive to refiners for blending purposes.
