Market Report - October 2017

Posted 03 October 2017

Egg prices rise due to fipronil scandal

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 1.32 and closed at 1.29.
Against the €, sterling opened the month at 1.12 and closed at 1.085.

SOFT COMMODITIES

Sugar prices were down on London ICE (-3%), but rose on ICE US (+1%). Planted area for sugar beet in the EU is forecast to increase 16% y-o-y for the upcoming 2017/18 crop. Subsequently, sugar production in the EU is set to rise this year.

Cocoa bean prices were down on ICE US (-4%) and London ICE (-2%). In the UK, cocoa butter prices fell (-3%), but cocoa powder rose (+1%).

OILS AND FATS

Soyabean oil prices rose in Rotterdam (+4%) due to forecasts of lower production. Rapeseed oil prices rose in Rotterdam (+3%), due to forecasts of lower production for 2017/18. However, prices remained stable in Canada (0%), due to an improving crop outlook.

Palm oil prices rose in Rotterdam (+7%) and Malaysia (+4%), due to low stocks caused by rising international demand. Palm kernel oil prices rose in Indonesia (+18%), Rotterdam (+15%) and Malaysia (+5%). Coconut oil prices fell in Rotterdam (-1%), but remained stable in the Philippines (0%). Sunflower oil prices rose in Ukraine (+2%), NW Europe (+2%).

Extra virgin olive oil prices fell in Italy (-5%) and Spain (-1%). Lampante oil prices rose in Spain (+2%).

GRAINS

Milling wheat prices fell on CBOT US (-15%), as lower prices in Russia reduced US exports.

Prices also fell on Euronext Paris (-7%), in Germany (-5%) and the UK (-5%), due to adverse weather conditions.

INGREDIENTS

Hazelnut prices were down in Turkey (-8%), due to expectations of a larger crop this year. Almond prices rose in the US (+2%) and Spain (+2%).

For dried fruit, raisin prices rose in the US (+4%), but fell in Turkey (-1%). Dried apricot prices were up in Turkey (+11%).

Desiccated coconut prices fell in the Philippines (-12%).

DAIRY

Butter prices continued to rise in the EU (+8%) as milk fat supplies remain tight. Prices rose in the UK (+13%), also rose in New Zealand (+4%).

Prices for UK Cheddar continued to rise (+1%).

SMP prices rose in the EU (+2%) as supplies remain tight.

Shell egg prices rose in the EU (+8%), as the fipronil scandal has limited the amount of supplies. EU shell egg prices rose (+16%) increasing liquid and dried pricing.


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