Market Report - February 2015

Posted 02 February 2015

"Sugar prices fall 4% driven by global oversupply"

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 1.565 and closed at 1.562.
Against the €, sterling opened the month at 1.262 and closed at 1.287.

SOFT COMMODITIES

Sugar prices continued to fall driven by large global supplies. Prices were down on liffe (-4%).

Cocoa bean prices rose on both ice (+2%) and liffe (+3%) driven by concerns about adverse weather in Ivory Coast.

Cocoa butter was up slightly (+1%), but prices for cocoa powder have fallen (-1%).

OILS AND FATS

Soyabean oil prices fell in the us and Rotterdam (-4%) as good weather during the growing period resulted in soyabean production increasing 10% y-o-y to 312.9M tonnes in 2014/15.

Palm oil prices fell in Rotterdam (-8%), driven by good supply prospects.

Rapeseed oil prices fell in Rotterdam (-2%), due to good production prospects from the EU.

Early January has seen increases, in sterling terms, for all the oils complex as the fx rate against dollar has fallen to around 1.51.

Coconut oil prices fell in the Philippines (-3%) and Rotterdam (-2%).

Extra virgin olive oil prices continued to rise in Spain (+6%), due to drought conditions.

Lampante olive oil prices rose (+6%) in Spain.

GRAINS

Prices for milling wheat were up slightly up (+1%) on liffe Paris, due to the lower availability of good quality milling wheat in Europe.

Global wheat production is set to rise 1% y-o-y to 722.2M tonnes.

INGREDIENTS

US almond prices have settled after rising (+2%) on the back of a reduced crop.

Spanish almonds are also up (+2%). Turkish sultanas increased (+7%) as the availability of decent quality product becomes tight combined with a falling exchange rate against dollar.

MILK AND DAIRY

EU milk production is in its seasonal low period; however prices are down y-o-y.

EU butter prices rose slightly in the UK (+1%). Butter prices have remained stable in New Zealand (0%).

Smp prices in the EU continued to drop (-1%), however in the UK prices rose (+9%).

Wmp prices in the EU also fell (-1%).

EU egg prices continued to increase (+3%), while processed egg prices in the EU remained stable (0%).

ENERGY

Brent crude oil prices fell on ice London (-22%), driven by continued supply growth from non-opec countries, combined with a weakening outlook for global economic growth.

Prices for petrol (-25%) and diesel (-18%) fell in Europe in line with crude oil prices.


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