Market Report - November 2017

Posted 06 November 2017

Sugar prices weighed down by expectation of surplus

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 1.29 and closed at 1.35.
Against the €, sterling opened the month at 1.085 & closed at 1.14.

SOFT COMMODITIES

Sugar prices are being weighed down by expectations of a large global sugar surplus in 2017/18, in particular an increase is expected from the EU following the lift on restrictions for production and exports.

Cocoa Bean prices rose on ICE US (+4%) but fell in London ICE (-1%). Cocoa production has been revised further up, to a record 4.7m tonnes, up 18% y-o-y. Cocoa Butter prices remained stable in the UK (0%). Cocoa Powder prices fell in the UK (-1%).

OILS AND FATS

Soyabean oil prices fell in Rotterdam (-1%) and Argentina (-1%) due to forecasts of higher soyabean oil production during 2017/18. Rapeseed oil prices rose in Rotterdam (+2%) and Canada (+2%) driven by forecasts of tight global supplies for the next season.

Palm oil prices rose in Indonesia (+3%), Rotterdam (+3%) and Malaysia (+2%) as a result of low stocks alongside higher global import demand. Palm kernel oil prices rose in Malaysia (+27%), Rotterdam (+10%) and Indonesia (+10%) due to declining stocks.

Coconut oil prices fell in Rotterdam (-5%).

GRAINS

Milling wheat prices rose on Euronext Paris (+8%) and CBOT US (+7%.) driven by increased demand from the feed sector.

INGREDIENTS

Hazelnut prices were down in Turkey (-1%).

Almond prices rose in the US (+1%) but fell in Spain (-1%).

For dried fruit, raisin prices continue climbing in the US (+8%) and are also up in Turkey (+2%).

Greek currants are suffering from low crop volume with no carry over from last year’s crop. Prices remain high.

Desiccated coconut prices remained stable in the Philippines (0%).

DAIRY

Butter prices rose in the EU (+6%) as supplies of milk fat remain tight. Butter prices continued to rise in the UK (+1%). In addition, butter prices fell in the US (-3%) but remained stable in New Zealand (0%).

Prices for cheese in the EU continue to rise Emmental (+5%) and UK Cheddar (+4%.)

SMP prices fell 5% in the EU and WMP prices fell (-4%).

Shell egg prices rose in the EU (+11%), driven by increases in Italy (+23%), France (+21%), the Netherlands (+16%) with whole liquids (+36%), yolk powder (+26%), yolk liquids (+24%), whole powder (+19%) due to the Fiprinol scare.

ENERGY

Oil and oil products prices increased m-o-m on high political tension (Kurdistan referendum and North Korean threats), while petrol prices were negatively affected by the end of driving season.

Brent crude oil prices rose on ICE London (+11%) with Diesel prices rising (+14%).


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