Market Report - November 2016

Market Report Up until November 2016

All percentage changes in this report refer to month-on-month price changes and are provided by Mintec.

FX Rates

Currency against Sterling Opened September Closed September
Dollar 1.31 1.30
EURO 1.175 1.15

Ingredients

Sugar prices on London ICE (+10%) rose on the back of reports which showed a decline in the pace of production in Brazil’s main centre-south region, due to rainfall and frosts along the sugar belt, which delayed the harvest. Sugar production slowed to 2.54m tonnes in the second half of August from 2.97m tonnes in the first half.

Cocoa bean prices fell on London ICE (-3%), as rainfalls in the Ivory Coast ahead of the new season in October raised expectations that production will recover.

Oils and Fats

Soyabean oil prices rose in Rotterdam (+2%), driven by high palm oil prices which rose in Malaysia (+3%), Rapeseed oil prices rose in Rotterdam (+1%) as the seasonal increase in production in Indonesia and Malaysia has not materialised.

Palm kernel oil prices rose in Malaysia (+4%) but fell in Rotterdam (-1%) and Coconut oil prices remained unchanged.

Sunflower oil prices rose in Rotterdam (0%) and extra virgin olive oil prices rose in Italy (+8%) due to concerns about yields in the forthcoming season.

Grains

Milling wheat prices remained stable on Euronext Paris (0%) but fell on CBOT US (-4%) due to high global supply.

Prices of oats remained stable in Finland (0%) but fell on CBOT US (-5%).

Fruit

Turkish hazelnut prices were down last month (-8%) due to extra supply from the harvest which commenced in August, however overall prices remain up 22% y-o-y as production is expected to decline y-o-y. Almond prices fell slightly in Spain (-12%) and in the US (-1%). Almond production in California has been forecast at 2.05bn pounds for 2016/17, an increase on 1.9bn pounds produced in 2015/16.

For dried fruit, Turkish sultanas fell (6%) as did US raisins (-3%). Greek currants prices increased late September due to poor crop figures. Turkish dried apricot prices were up (+8%) while desiccated coconut was lower in the Philippines (-1%).

Dairy

Falling milk supplies within the EU are currently limiting dairy production and resulting in higher costs for dairy processors. In September, average EU butter prices increased a further (+8%) due to falling supplies and availability of milk fat to reach record high price levels.

Cheddar prices followed a similar trend to butter with increases in the UK of (+25%).

SMP prices from all major global producers increased in September with prices up (+7%). Tighter supplies also resulted in WMP prices increasing in both New Zealand (+21%) and the EU (+6%).

Average EU shell egg prices have increased (+6%) due to a fall in laying chick numbers, with the largest price movements from the Netherlands (+12%), Belgium (+11%) and Spain (+9%). This also drove higher prices for EU processing eggs with increases in liquid eggs (+3%) and egg yolk powder (+1%).

Energy

Brent crude oil prices fell on ICE London (-4%) and light sweet crude oil on NYMEX US (-2%) fell as both US stocks and OPEC production increased, while slowing oil demand growth revived fears of global oversupply. Sterling weakness largely offset this fall.

Market Reports

Search Site

About BAKO

Trade account holders can place their orders on line 24 hours a day 7 days a week making ordering from BAKO even easier. Find out now how easily ordering online from BAKO can be.

Place your Order Now

Bako Products