Market Report - January 2017

Posted 09 January 2017

EU to release 20,000 tonnes of SMP

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 1.22 and closed at 1.25.
Against the €, sterling opened the month at 1.11 and closed at 1.18.

OILS AND FATS

The veg oil complex eased downward slightly at the start of November before firming circa 3% over the month.

The long awaited fall of palm pricing remains off the radar at the moment as heavy rainfall in Malaysia and Indonesia persists in what should be the back end of the peak harvesting season.

DRIED FRUIT

The 2016 crop of Turkish sultanas was good and prices remain in the lower end of the market range.

Brexit brought pressure to bare as the Turkish produce is traded in US Dollars. However, the Turkish Lira remains weak and it is expected that we will see prices remain competitive into the new year.

Greek currants are in tight supply and the weakness of Sterling combined with a poor crop size has seen prices increasing. One would expect prices to continue to rise.

DAIRY

Dairy prices have eased down towards the back end of November due to improved Sterling FX.

An announcement by the EU to release 20,000 tonnes of SMP out of Intervention over coming months has eased forward pressure on supply reducing the spot price by around 5%.

Bulk butter prices have fallen around 3.5% from their long time high record position of £4000/mt.

Although easing, the dairy complex is not expected to see any serious reduction until milk volumes increase in spring.

ENERGY

Crude oil prices remained in a fairly flat position with a $45-$48 range. A meeting of OPEC on 1st December delivered an agreement to reduce / control output.

This had the immediate effect of increasing Brent Crude prices to $54.


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