Market Report - January 2016

Posted 05 January 2016

EU Onion Prices fall 13%

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

EXCHANGE RATES

Against the $, sterling opened the month at 1.543 and closed at 1.511.
Against the €, sterling opened the month at 1.40 and closed at 1.389.

SOFT COMMODITIES

Sugar prices on both ICE US and LIFFE London rose (+1%) as mills in Brazil processed more ethanol from sugarcane rather than sugar. Cocoa bean prices rose on LIFFE London (+4%) due to concerns over the potential impact of dry weather on the main harvest, which is currently in progress. Cocoa butter prices rose in the UK (+3%) due to the increase in bean prices, but following recent rises cocoa powder prices fell (-6%).

OILS AND FATS

Soyabean oil prices rose in Rotterdam (+2%) due to the strong demand from major importers China and India. Palm oil prices fell in Malaysia (-3%) and Rotterdam (-1%), as recent wet weather conditions in Malaysia eased concerns about the impact of prolonged dryness, and production in the country also exceeded expectations in October. Rapeseed oil prices fell in Canada (-2%) due to larger than expected production in 2015/16, but rose in Rotterdam (+1%) due to higher demand. Sunflower oil prices fell in Rotterdam (-4%).

Rapeseed oil prices rose (+4%) and Sunflower oil prices rose (+7%) in Rotterdam.

Extra virgin olive oil prices fell in Spain (-6%) and Italy (-6%) due to the start of the olive harvest and a rise in oil supplies to the market place. Lampante olive oil prices in Spain also fell (-6%).

GRAINS

Milling wheat prices rose on LIFFE Paris (+4%), but fell in the UK (-2%). Oats prices rose in the US (+8%), but fell in Finland (-4%).

INGREDIENTS

Turkish hazelnut prices fell last month (-13%) as Turkey is expecting a bumper hazelnut crop this year, in excess of 700,000 tonnes, sharply up by 70% y-o-y. Spanish almond prices rose (+8%), while prices from the US fell (-11%). Annual declines in almond production have led to record prices, which have impacted global demand in recent months. For dried fruit; Turkish raisins rose (+1%), while US raisins fell (-1%). Sultana prices rose (+1%), while Turkish dried apricots were up (+4%). Desiccated coconut prices fell in the Philippines (-3%).

For dried fruit, Turkish sultana prices fell (-1%), US raisins remained steady (0%) while Turkish dried apricots were up (+4%). Desiccated coconut was stable in the Philippines (0%).

MILK AND DAIRY

Increased supply is helping lower milk prices across the EU. EU butter prices Average UK farm gate milk prices decreased (-1%) in November due to seasonal production increases. Butter prices decreased in the EU (-1%) on average due to an oversupply of milk in the EU. UK cheddar prices remain stable (0%), whilst New Zealand cheddar prices have fallen (-4%) due to high supply. SMP prices have decreased in the EU (-6%) due to higher availability in the domestic market. EU shell egg prices were up (+3%), with the largest increases seen in France (+7%) and Poland (+7%), driven by higher EU exports to the US. Additionally, EU liquid egg prices increased (+6%) and egg powders declined (-3%).

European SMP prices were up (+5%) due to high volumes going into Private Storage Aid, reducing availability on the market. WMP prices in Europe have increased by (+9%) as a result of higher demand.

ENERGY

Brent crude oil prices on ICE London fell (-6%) due to record stocks while the Chinese economy continued to struggle. The USD also strengthened, hampering growth in emerging markets.


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