Market Report - December 2013

Posted 29 November 2013

"Processed egg prices rise from 8-10%"

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Almonds (ES) +11% Potatoes (ES) -22%
Palm oil (NL) +8% Chicken (BR) -10%
Whole liquid egg (EU) +8% Pears (DE) -10%
Wheat Milling (Liffe) +8% PS (Eur) -4%
Sugar (ICE) +6% Steel CR (EU) -3%
Natural gas (Bacton UK) +6% Kraftliner (EU) -1%
All percentage changes in this report refer to price movements over the previous month.

EXCHANGE RATES

Against the $, Sterling opened the month at 1.60 and closed at 1.60 as at 12th November.
Against the €, Sterling opened the month at 1.20 and closed slightly down at 1.19.

SOFT COMMODITIES

A cocoa shortage was projected for the upcoming 2013/14 season which drove cocoa bean prices to a two year high. Cocoa was up on ICE (+6%) and on LIFFE (+2%). In the UK, cocoa butter prices peaked in mid- October before descending to remain unchanged. Cocoa powder ended down (-9%), returning to levels seen prior to 2009. Sugar prices firmed on ICE (+6%) and on LIFFE (+4%) following fire in Brazilian port of Santos, destroying 180,000 tonnes of raw sugar.

FATS AND OILS

Prices for most vegetable oils rose driven by increased demand both for food and biofuel consumption. Prices for soyabean oil remained unchanged in Rotterdam (0%). Prices in Argentina (+5%) rose due a drought affecting 70% of Argentina’s soyabean area. Sunflower oil prices fell in Russia (-4%) due to a better than expected crop, however prices in Ukraine (0%) and Argentina (0%) remain unchanged. Rapeseed oil prices rose in Rotterdam (+4%) due to an increase of biodiesel production in the EU. Palm oil prices rose in both Malaysia (+8%) and Rotterdam (+8%) as Malaysian inventories fell below market expectation. Palm kernel oil rose in Rotterdam (+5%) during October and has started a serious climb in November due to the disaster in the Philippines.

GRAINS

Global wheat prices have been rising driven by concerns over quality from some major exporters. Milling wheat prices rose on LIFFE Paris (+8%) and Oats prices rose on CBOT US (+2%).

DRIED FRUIT

Turkish sultanas have eased back slightly due to the lack of buying with buyers switching to alternative origins such as China and Iran. It is expected that prices will firm again as the season progresses.

MEAT AND POULTRY

Deadweight beef prices fell increased in Brazil (+2%) and Uruguay (+1%). In the EU, deadweight beef prices were down (-3%) overall.

MILK AND DAIRY

International butter prices were mixed, stable in New Zealand (0%). EU butter prices fell in the UK (-1%). In the EU, SMP prices varied, with falls seen in Germany (-4%) and the Netherlands (-3%), while prices rose sharply in the UK (+10%). The EU cheese market continued last month’s upward trend.

Processed egg prices rose, with liquid yolk (+10%), whole egg liquid (+8%) and white liquid.

METALS

Prices for base metals rose on the LME driven by improving global economic sentiment. Aluminium (+4%).


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