Here is the Mintec Pricing update for the past week. Feel free to get in touch if you have any questions:
• London cocoa futures continued to move higher, with the front month contract gaining 2.6% throughout the week. Speculators trimmed their net short position by over 10,000 contracts. Fundamentals remain bearish, with good rains last week bolstering hopes for the 21/22 crop, and more rain forecast for later this week. The higher terminal prices also fed into cocoa products, with the Mintec Benchmark Prices for Cocoa Butter EXW W Europe [Mintec Code: COBS] up 3.4% week-on-week.
• The almond market continued to firm last week on the back of concerns over the drought situation in California. The Mintec Benchmark Prices for NPX 23/25 FAS US [Mintec Code: NP01] were assessed at $3.10/lb on 12 August, up 10 cents/lb on the week.
The July position report, released 12 August after the assessment deadline closed, showed another month of record shipments at 229 million pounds. This was in line with the responses from the Mintec survey ahead of the shipment report, with market participants submitting values between 200-230 million pounds and most respondents estimating between 220-230 million. If you are interested in receiving further information on the almond markets contact email@example.com to get access to the Weekly Mintec Almond Report.
• Durum wheat moved up again last week, with the Mintec Benchmark Prices for Italian Durum Fino EXW Central Italy [Mintec Code: WJ98] up nearly 24% since the beginning of July. The early results from the Italian harvest are below expectations both in terms of quality and quantity of durum wheat. Market players have cited concerns that with reduced and poorer quality Italian crop, and poor crops expected from Canada and the US, there could be a lack of durum wheat (and in turn semolina) available in both global and local markets. Market participants have expressed estimates of a 30-40% decline in production in North America. With prices rising sharply, farmers have been reluctant to sell, holding off for higher prices in the longer term, and leaving buyers to pay higher prices to obtain the product.