Market Report - April 2016

Posted 04 April 2016

Cocoa bean prices rise 8%

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 1.44 and closed at 1.39.
Against the €, sterling opened the month at 1.32 and closed at 1.28.

ENERGY

Brent crude oil prices increased on ICE London by (+3%) due to speculation that OPEC could begin to cut production in order to stabilise the market, coupled with strong demand for petrol in the US. EU diesel rose (+3%) as production is reduced in order to lower stock levels, while petrol fell (-3%).

SOFT COMMODITIES

Sugar prices rose on ICE US (+2%), but fell on LIFFE London (-1%). Global sugar production for 2015/16 is forecast at 172.1m tonnes, down 2% y-o-y, however there have been higher than expected levels of sugarcane crushing in Brazil towards the end of the season.

Cocoa bean prices rose on both LIFFE London (+8%) and ICE US (+5%) as production in the Ivory Coast has been affected by strong Harmattan winds, the worst in 30 years. Cocoa powder prices rose (+2%), but cocoa butter prices remained stable in the UK.

OILS AND FATS

Soyabean oil prices increased in Rotterdam (+5%) due to good demand while Palm oil prices continued to rise in Rotterdam (+3%) as large stocks in Indonesia and Malaysia offset concerns about the effect of potential El Nino related dryness.

Palm kernel oil prices rose in Rotterdam (+15%) while Coconut oil prices rose (+8%) due to poor yields. A temporarily tight supply due to lower crushing in Ukraine led to sunflower oil prices rising in Ukraine (+11%).

GRAINS

Milling wheat prices fell in the UK (-3%) as wheat production is forecast at a new record high following the good harvest in 2015. 2015/16 production is forecast up 1% y-o-y at 735.7m tonnes.

INGREDIENTS

Prices for almonds from the US continued to decline (-16%), influenced by better than expected 2015/16 output in California, the main almond grower. Spanish almond prices were also down (-1%).

Hazelnut prices declined in Turkey (-4%) and Spain (-2%), with production in Turkey expected above 700,000 tonnes, following favourable weather conditions in the current season.

In the dried fruit market, Turkish sultanas fell (-5%), but US raisins were up last month (+2%). Dried apricot prices were down (-2%) in Turkey, the main producer.

Desiccated coconut prices declined in Philippines (-2%).

MILK AND DAIRY

Butter prices fell in the EU (-6%), driven by lower milk prices and higher production. UK cheddar prices fell (-4%), driven by high production and stocks. The PSA for EU cheese has been extended until 30th September 2016 to help combat falling EU cheese prices.

SMP prices were down in the EU (-1%). SMP production remains high due to being the favoured commodity for excess milk production which has driven prices down further. WMP prices fell (-6%). EU shell egg and liquid egg prices remain stable (+0%).


Quick Links

Article Links

No links for this article