Market report up until September 2016
All percentage changes in this report refer to month-on-month price changes and are provided by Mintec.
|Currency against Sterling
Brent crude oil prices fell on ICE London (-6%) due to uncertainty over the global economic outlook including concerns over the UK’s vote to leave the EU, and a stronger USD.
EU diesel (-8%) fell to their lowest level in over two months due to high stock levels and falling demand.
Sugar prices rose on London ICE (+2%) due to an increase in consumption, which has been steadily increasing y-o-y. The increase in consumption will see ending stocks for 2016/17 fall to the lowest level in six years at 40.5m tonnes, down 13% y-o-y.
Large volumes of cocoa beans continue to be rejected at ports in the Ivory Coast due to poor quality, which has caused a reduction in exports. Both cocoa butter (+7%) and powder (+4%) rose in the UK.
Oils & Fats
Soyabean oil prices rose in Rotterdam (+2%) due to the slowdown of South American crushing and exports. Rapeseed oil prices rose in Rotterdam (+3%) due to lower than expected production of rapeseed in 2016/17.
Palm oil prices fell in Rotterdam (-3%) due to lower demand caused by increased prices earlier this year. Palm kernel oil prices fell in Rotterdam (-4%) but remained stable in Indonesia (0%). Coconut oil prices fell in Rotterdam (-3%).
Extra virgin olive oil prices rose in Spain (+4%), but remained stable in Italy (0%).
Milling wheat prices rose in the UK (+10%) while oats prices fell on CBOT US (-4%) and in Finland (-2%).
Expectations of a large 2016/17 crop in California, the main almond producer, drove almond prices down (-5%) in the US. US almond production is forecast to rise by 8% y-o-y in 2016/17. In Spain, almond prices fell (-7%).
Turkish prices for hazelnuts were up (+15%), as the production for the new 2016/17 season is projected to decline from last year.
For dried fruit, Turkish dried apricot prices rose slightly (+1%), as did sultanas (+2%) but raisins remained steady (+0%).
In Germany, prices were up for poppy seeds (+9%) and sesame seeds (+3%).
Milk & Dairy
On average EU butter prices increased yet again (+12%) and the UK (+16%), due to a lack of available cream fat. Major UK producers only churning for contracted tonnage.
EU SMP prices continued to increase (+2%) and EU WMP prices increased on average (+3%), driven increased export demand and low availability of milk.
Cheddar prices rose in UK (+8%) as a result of higher UK exports outside the EU. New Zealand cheddar prices remained stable (0%). EU egg prices remained stable (0%) due to falling feed costs and increased production. EU processed egg prices increased (+2%), with liquid yolk and whole liquid egg prices remaining stable (0%) and liquid white fell (-5%).