Market Report - March 2016

Posted 01 March 2016

UK Tomato Prices fall 10%

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

SOFT COMMODITIES

Cocoa Bean prices have fallen again on both the London LIFFE and US ICE due to the selloff of future positions triggered by confusion in the market on 2015/16 production levels. Cocoa Butter prices fell in the UK (-10%) but Cocoa Powder pricing rose (+5%). EU Molasses remain stable.

OILS AND FATS

Vegetable Oil prices fell on the back of demand for biofuels weakening as a result of low crude oil prices. Slow economic growth in China also added pressure to pricing. Soyabean Oil prices fell in Rotterdam (-5%) but (+2%) on US CBOT. Palm Oil was down (-1%) in Malaysia, up (+1%) in Rotterdam and (+2%) in Indonesia. Sunflower Oil prices fell in Argentina (-1%) but remained stable in the Ukraine and Rotterdam whilst increasing (+6%) in Russia. Coconut Oil remained stable in the Philippines and Rotterdam as weak demand offset concerns over ongoing shortages Extra Virgin Olive Oil rose in Spain by (+13%) and (+6%) in Italy due to a tightening of supplies

GRAINS

Maize prices rose in Argentina (+5%), Brazil (+2%) and (+2%) CBOT with global production forecasted down 4% y-o-y. Prices however did fall (-1%) on LIFFE Paris and in Germany. Feed Wheat prices fell (-6%) in the Netherlands and on LIFFE (-2%). Milling Wheat rose on ASX Sydney (+5%) and on CBOT (+2%) but fell in Europe, (-7%) Germany, (-3%) UK and LIFFE Paris. Durham Wheat rose in Canada (+8%) but fell (-3%) Italy. Outlook on wheat is that there is still plentiful supply and little demand. Weather can impact and turn the market as we have seen in the past but at the moment is not seen as a global concern, 2016 crop at this stage looks good. Paddy Rice rose in Italy (+8%) but remained stable on CBOT US and fell in Vietnam (-4%).Basmati Rice rose in Pakistan (+1%) but fell (-8%) in India.

INGREDIENTS

Turkish Dried Figs rose (+15%) on the back of a shortage of top quality product. Almonds from the US fell (-9%) and in Spain by (-2%). Turkish Hazelnuts reduced by (-5%) and Spanish by (-6%). Global Hazelnut production is forecasted to rise in the next couple of years driven by high hazelnut prices Brazilian Cashew Nuts rose (+2%) whilst Peanut pricing was mixed, up (+1%) US and down (-2%) Brazil. Sultanas fell in price (-2%) Turkey and (-6%) Chinese, whilst Turkish Raisins rose (+3%). Turkish Apricots fell (-4%) due to the removal of demand from Russia. Desiccated Coconut pricing continues to ease in the Philippines (-1%). Honey pricing rose in Argentina (+2%). Onion Powder rose (+2%) as fresh onion production was affected by hot weather reducing the amount available for processing

FRUIT

Potato prices have declined on average (-5%) and Onion prices fell (-13%) across the EU as the harvest is in full swing.

VEGETABLES

EU Potato prices rose (+2%) on average with increases in Germany (+6%) France (+5%) and UK (+3%) and reductions in Spain (-12%) and Poland (-3%). There remains a slight issue with stored potato but reports are that on the whole the majority of stock is in good condition. Carrot prices in the EU increased (+9%) and Onion (+3%) as a result of wet weather. Cabbage prices rose (+12%) Poland and (+6%) in the UK. Tomato pricing fell in UK (-10%) and (-1% Spain) but rose (+12%) in Germany and (+3%) in Italy. EU production for Tomatoes is forecasted to reduce by 4%. In 2015/16.

MEAT AND POULTRY

Average EU Deadweight Beef prices were down (-1%) in January driven by higher slaughter and increased carcass weights. Beef in the UK fell by (-1%) but rose by the same amount in Ireland and Germany. Lamb prices rose (+2%) in UK and Ireland due to a small herd at the start of 2016. Deadweight Pork prices increased (+1%) supported by the opening of Private Storage Aid in January. German prices increased (+3%) but fell in Denmark (-2%). EU Chicken prices increased (+1%) due to lower chick placements in November.

MILK AND DAIRY

UK farm gate Milk price fell (-1%) in January whilst EU Butter pricing fell (-2%) driven by increased availability as Butter stocks were removed from PSA. Butter prices increased in New Zealand (+6%) and the US (+5%) due to increased domestic demand. UK Cheddar prices remain stable. SMP fell (-1%) in the EU and (-5%) in the US but increased (+3%) in New Zealand. WMP prices fell (-1%) in the EU. Higher EU egg production and lower feed prices led EU shell egg to fall (-5%), EU Liquid Egg fell (-10%) as did egg powder by (-3%).


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