Market Report - January 2017

Market report up until January 2017

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

FX Rates

Currency against Sterling Opened November Closed November
Dollar 1.25 1.23
EURO 1.18 1.17

Soft Commodities

Sugar prices fell on London ICE (-6%) and ICE US (-5%) as hedge funds exited the market, over growing confidence that global production will exceed consumption in the 2017/18 season. Cocoa bean prices fell on both London ICE (-8%) and ICE US (-7%) as hedge funds reduced investments, due to expectations that the global market will experience a supply surplus in the current 2016/17 season.

Oils and Fats

Soyabean oil prices rose in Rotterdam (+4%). Rapeseed oil prices rose in Canada (+8%) and Rotterdam (+5%), as concerns over tight global supplies pushed prices higher. Palm oil prices rose in Malaysia (+5%), Rotterdam (+5%) and Indonesia (+3%).

Palm kernel oil prices also rose in Rotterdam (+14%), Malaysia (+10%) and Indonesia (+7%), climbing to five year highs as production is expected to remain tight until the second half of the current season. Extra virgin olive oil prices rose in Spain (+4%).

Grains

Milling wheat prices fell on Euronext Paris (-1%), due to an upward revision in 2016/17 production forecast. However, milling wheat prices increased in Germany (+3%) and the UK (+10%).

Ingredients

Turkish hazelnut prices remained stable (0%). Almond prices fell in the US(-3%) and Spain (-2%).

For dried fruit, sultana prices fell in the EU (-4%) but have suddenly increased in early January. In Turkey, dried apricot prices fell (-6%), while raisin prices also fell (-1%).

Milk & Dairy

Butter prices rose in the EU (+2%), as milk fat supplies remain low. Butter prices remained stable at high levels.

Prices for cheese in the EU rose for Emmental (+8%), Edam (+6%), Italian Parmesan (+4%) and Gouda (+1%), however UK Cheddar remained stable (0%) following previous increases.

SMP prices fell in the EU (-1%), due to volumes being released from the private intervention scheme. WMP prices rose in the EU (+5%).

Shell egg prices rose in the EU (+6%) and the UK (+5%) caused by a fall in egg layer numbers as a result of bird flu outbreaks. Prices for processing eggs in the EU rose for egg white liquids (+17%), whole egg powder (+4%).

Energy

Brent crude oil prices rose in ICE London (+12%) and Light sweet crude oil prices in NYMEX US (+11%) rose, due to OPEC and non-OPEC producers agreed to cut production for the first time since 2001. The new deal will cut production by 1.2m barrels a day (bbl/d) for the first six months of 2017.

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