Here is the Mintec Pricing update for the past week. Feel free to get in touch if you have any questions:
• The Mintec Benchmark Prices for Rapeseed Oil FOB Rotterdam moved up on the week with spot assessed at €1,520.50/mt on 8 September. The spot price was the highest seen in 50 years according to Mintec data. The historic high was driven by a number of key reasons; there is currently a real lack of rapeseed oil available, with low European supply of rapeseed and the huge losses seen in Canada. A scramble for oil on the nearby is apparent as market players were reported to Mintec to be short physical. In addition, the margin between rapeseed oil and biodiesel RME (rapeseed methyl ester) is favourable, adding increased demand from the biodiesel sector who are looking to purchase alongside those in food production. Finally, rapeseed oil is benefitting from the overall complex’s bull moves across the veg oils.
• The Mintec Benchmark Prices for Crude Palm Oil CIF Rotterdam [Mintec Code: CPOR] reached $1,370.50/mt last week, the highest price seen on spot market since the commodity supercycle of 2008. The rise in price in the European market came as a result of record highs on the Bursa Malaysia futures exchange for Palm oil, with speculation and technical trading adding upward price pressure. In addition, supply is still tight due to low production levels, with Covid-19 related issues sapping manpower. Market participants suggest that prices could rise further this coming week on expected demand from China after their Golden Week holiday came to an end on 7 October.
• London cocoa futures continued to move higher on the back of reports potential black pod outbreaks in Cote d’Ivoire and additional speculative buying. The Commitment of Traders report dated 5 October showed managed money increasing their net long position to 50,888 lots, the highest level so far this year. A weaker GBP versus USD also lent support to London cocoa futures. Cocoa products were similarly up, with the Mintec Benchmark Prices for Cocoa Butter EXW Europe [Mintec Code: COBS] up €241/mt or 5.4% week-on-week as of the Wednesday assessment.
• Prices eased in the almond market last week ahead of the release of the September Position Report which is due on 12 October. The Mintec Benchmark Prices for standard 5% almonds [Mintec Code: NAL1] were assessed $2.38/lb on Thursday (7 October), down 4 cents/lb on the week. Since then prices have eased further with offers and trades reported between $126.96.36.199/lb. Market participants cite a lack of confidence in the upcoming shipment figure, with a decline expected.
• The Pricing Team publishes a weekly vegetable oils report that can be found in the Insight tab of Mintec Analytics. You can find the most recent version here. For any queries please contact us at firstname.lastname@example.org.