Market Report up until March 2014
All percentage changes in this report refer to price movements over the previous month - Janaury 2014. Prices for most vegetable oils fell, as global supply estimates were raised. The Turkish Lira devalued against the US dollar, causing prices to decrease for a majority of Turkish commodities.
- Peanut (US) +20%
- Cocoa Powder (UK) +15%
- Oats +16%
- Deadweight Beef (BR) -5%
- Soyabean oil (CBOT US) -6%
- Brent crude oil -3%
|Currency against Sterling
Cocoa prices continued to climb on both LIFFE (+6%) and on ICE (+8%) influenced by slow deliveries of beans to ports in the Ivory Coast. Cocoa powder prices rose (+15%) in the UK following several months of decline. Sugar prices fell on ICE (-9%) and LIFFE (-9%) to the lowest levels since June 2010 due to an expected global oversupply.
Oils and Fats
Prices for most vegetable oils fell, as global supply estimates were raised. Soybean oil prices continued to fall in Rotterdam (-2%) amidst good global supply. Global soybean production is expected to rise in 2013/14 to 286.8m tonnes, up 7% YOY.
Sunflower oil prices also fell, with prices down in Rotterdam (-4%). Rapeseed oil prices decreased in Rotterdam (-5%), with the forecast for global rapeseed production currently at 70.0m tonnes, up 11% YOY. Palm oil prices fell in Rotterdam (-5%) as demand has fallen due to other oils becoming more competitive in price.
Prices for palm kernel oil and coconut oil were stable in Rotterdam (0%), and in Spain, lampante olive oil and EVO was unchanged.
Milling wheat futures fell on CBOT US (-9%) driven by prospects of record production. The global wheat production forecast for 2013/14 was revised higher by 1.2m tonnes to 712.6m tonnes, an increase of 8.5% YOY. Prices for milling wheat also fell on LIFFE Paris (-7%). Oats prices rose on the CBOT US (+16%).
Oats prices rose on the CBOT US by 8%.
Black pepper prices decreased (-3%) as quantities from India are released due to the start of their harvest season. White pepper prices also decreased in India (-11%) as this comes into season too. Prices of ginger increased in India (+6%) as growers in the main producing region, Karnataka, reject current low prices and begin withholding quantities from the market, constraining supply. In India, nutmeg prices rose (+9%) as did prices of turmeric (+7%).
The Turkish Lira has currently devalued against the US dollar, causing prices to decrease across a majority of Turkish commodities; sultanas have decreased in Turkey (-4%) but have since firmed due to intervention on interest rates by the Turkish government.
Potato prices across Europe rose (+3%) as EU countries are now reliant on stocks to meet demand. Onion prices increased in the UK (+10%) as wet weather leading up to spring has hampered planting.
Meat and Poultry
Deadweight beef prices decreased in Brazil (-5%) while EU deadweight beef prices remained on average unchanged (0%). EU deadweight chicken prices were up (+1%).
Milk and Dairy
In the EU, butter prices were down, with falls seen in the UK of -7%. In the EU, SMP prices started to fall but rallied to increase by (+) 7% during January. WMP prices increased across the EU with prices up 2%. In the EU cheese market, prices were mainly stable, however, UK mild cheddar prices were down (-1%).
EU egg prices were also mainly down, with falls seen in the UK (-8%). Processed egg prices decreased in the EU, with liquid yolk (-11%), liquid white (-5%), whole liquid egg (-5%) and yolk powder (-3%) all down.
Prices for Brent crude oil on ICE London fell (-3%), amidst concerns that slower growth in China may limit demand. Prices fell in Europe for petrol (-2%) and diesel (-2%), in line with crude oil.