Market Report Up until July 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 on ICE London (+8%) and light sweet crude oil prices on NYMEX US (+8%) both rose due to a slowdown in US drilling and an increase in Chinese refining. In addition, wildfires in Canada and attacks on Nigerian infrastructure resulted in reduced production. EU diesel is up (+15%), EU petrol up (+11%).
Sugar prices rose on ICE US (+8%) and London ICE (+4%), due to the effect of the strengthening BRL. Cocoa bean prices fell on London ICE (-5%) and ICE US (-4%), due to the arrival of heavy rainfall in most of the Ivory Coast, following a prolonged dry season. Cocoa butter prices rose (+9%), due to expectations that smaller size beans this season will make less butter. Cocoa powder prices in the UK (-5%) fell.
Oils & Fats
Soyabean oil prices fell on CBOT US (-7%) and in Argentina (-4%) due to higher crushing levels increasing the supply of soyabean oil, however they rose in Rotterdam (+1%). Rapeseed oil prices fell in Canada (-5%) and Rotterdam (-1%) due to record exports from Canada satisfying demand. Palm oil prices fell in Malaysia (-5%), Rotterdam (-3%) and Indonesia (-2%) due to lower demand as importers switched to alternative oils. Palm kernel oil prices fell in Malaysia (-9%), Indonesia (-6%) and Rotterdam (-6%).
As we enter June the entire oil complex has increased and UK prices are pushed higher again due to weakening Sterling.
Coconut oil prices fell in Rotterdam (-14%) but rose in the Philippines (+4%). Sunflower oil prices rose in Rotterdam (+2%) due to higher demand.
Extra virgin olive oil prices remained stable in Italy (0%) and fell in Spain (-5%) where production turned out to be higher than expected. Lampante olive oil prices also fell in Spain (-3%).
Milling wheat prices rose in the UK (+4%) and Oats prices remained stable.
Prices for almonds from the US were on the rise again (+12%) following an increase in demand, supported by low almond prices seen in the past few months. Spanish almonds were also up (+8%). In Turkey, hazelnut prices increased (+4%) but remained steady in Spain (0%).
In the dried fruit market, Turkish sultana prices declined (-9%); US raisins were also down last month (-5%). Dried apricot prices rose slightly (+1%) in Turkey, the main producer.
Desiccated coconut prices were up in Philippines (+9%).
Poppy seed prices rose on average in Germany (+3%) while sesame seed was up in India (+4%).
Milk and Dairy
EU butter prices increased in the UK (+7%) and the Netherlands (+5%) following an increase in exports to China, Saudi Arabia and the US.
EU SMP and WMP prices increased (+3%).
EU egg prices fell (-4%) with the largest decreases seen in France (-18%), the Netherlands (-13%), Belgium (-12%), Slovenia (-11%) and Spain (-11%), due to increased production and falling feed costs. EU processed egg prices fell with liquid white down (-11%), whole liquid egg down (-5%) and liquid yolk also down (-4%).