Market Report - February 2017

Posted 01 February 2017

Sugar and cocoa bean prices fall on expected surplus

All percentage changes in this report refer to month-on-month price changes and are provided by Mintec.


Against the $, sterling opened the month at 1.25 and closed at 1.23.
Against the €, sterling opened the month at 1.18 and closed at 1.17.


Sugar prices fell on London ICE (-6%) and ICE US (-5%) as hedge funds exited the market, over growing confidence that global production will exceed consumption in the 2017/18 season.

Cocoa bean prices fell on both London ICE (-8%) and ICE US (-7%) as hedge funds reduced investments, due to expectations that the global market will experience a supply surplus in the current 2016/17 season.


Soyabean oil prices rose in Rotterdam (+4%).

Rapeseed oil prices rose in Canada (+8%) and Rotterdam (+5%), as concerns over tight global supplies pushed prices higher.

Palm oil prices rose in Malaysia (+5%), Rotterdam (+5%) and Indonesia (+3%).

Palm kernel oil prices also rose in Rotterdam (+14%), Malaysia (+10%) and Indonesia (+7%), climbing to five year highs as production is expected to remain tight until the second half of the current season. Extra virgin olive oil prices rose in Spain (+4%).


Milling wheat prices fell on Euronext Paris (-1%), due to an upward revision in 2016/17 production forecast. However, milling wheat prices increased in Germany (+3%) and the UK (+10%).


Turkish hazelnut prices remained stable (0%). Almond prices fell in the US (-3%) and Spain (-2%).

For dried fruit, sultana prices fell in the EU (-4%) but have suddenly increased in early January. In Turkey, dried apricot prices fell (-6%), while raisin prices also fell (-1%).


Butter prices rose in the EU (+2%), as milk fat supplies remain low. Butter prices remained stable at high levels.

Prices for cheese in the EU rose for Emmental (+8%), Edam (+6%), Italian Parmesan (+4%) and Gouda (+1%), however remained stable for UK Cheddar (0%) following previous increases.

SMP prices fell in the EU (-1%), due to volumes being released from the private intervention scheme. WMP prices rose in the EU (+5%).

Shell egg prices rose in the EU (+6%) and the UK (+5%) caused by a fall in egg layer numbers as a result of bird flu outbreaks.

Prices for processing eggs in the EU rose for egg white liquids (+17%), egg whole powder (+4%).


Brent crude oil prices rose in ICE London (+12%) and Light sweet crude oil prices in NYMEX US (+11%) rose, due to OPEC and non-OPEC producers agreed to cut production for the first time since 2001.

The new deal will cut production by 1.2m barrels a day (bbl/d) for the first six months of 2017.

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