Market Report - November 2011

MARKET REPORT November 2011.

Uncertainty about the World economy is making it difficult to forecast the trend for many commodities. Fund investors are reluctant to invest and react to every change in sentiment, creating volatility.


  • Against the $, Sterling opened the month at 1.585 and stood at 1.56 as at 10th October.
  • Against the Euro, Sterling opened the month at1.16 and stood at 1.16 as at 10th October.


Continuing uncertainty about the global economic and financial outlook affected energy prices in September, which declined sharply for both Brent Crude Oil on ICE and light sweet crude on NYMEX by 10%. Road fuel prices also fell, particularly petrol, down in Europe by 8%, as the motoring high season ended. E.U. diesel prices fell 6%.


Edible Oil prices fell sharply, as investors moved out of commodity markets.

Soya Bean Oil - Prices fell 6% in Rotterdam. Concerns remain about the U.S. soya bean crop, as development was affected by dry weather in major soya bean growing areas.

Palm Oil - Prices fell 9% in Rotterdam, as supplies are expected to be ample for the remainder of the year and into 2012. Strong demand will continue to affect the market for the rest of the season.

Rapeseed Oil Prices fell 3% in Rotterdam. The Canadian Canola crop is underway, with good yields expected this season. Exports are likely to reach last season's levels.

Sunflower Oil Prices fell 9% in Rotterdam, as record crops will be harvested in the Black Sea Region.

Palm kernel Oil - Prices rose 3% in Malaysia, while those for Coconut Oil fell slightly.


Some price increases occurred last month, as demand increased at the end of the summer holiday period.

S.M.P. E.U. prices rose 3%. European Butter prices rose slightly, as did those for W.M.P.


World grain prices fell in September, given good northern harvests and the need to clear old stock. European milling Wheat prices fell 10% on LIFFE and 19% on CBOT, while feed Wheat fell 9% on LIFFE in London.

Cocoa bean and butter prices fell substantially on LIFFE in the U.K. and on the U.S. Intercontinental Exchange, but U.K. cocoa powder prices remained stable.


The Californian Thompson Raisin crop is giving poor drying yields and availability, as high tonnage is sold for wine manufacture. U.K. prices are not helped by a poor FX rate with the U.S. Dollar.

Sultana prices remain high, but stabilised in early October.

New season Greek Currants are available at extremely high prices and, without any significant carryover stocks in the U.K., they should remain high and potentially scarce, as the year progresses.

Report by Frank Wade

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