Here is the Mintec Pricing update for the past week. Feel free to get in touch if you have any questions:
• Prices across all almond grades rose sharply over the assessment period following the release of the USDA Objective almond measurement on Monday (12 July). The objective release came in at 2.8 billion pounds, 400 million pounds lower than May’s subjective forecast and lower than industry expectations. Ahead of the release most market participants were expecting a figure between 2.9-3.0 billion pounds, with 2.8 billion definitely on the lower end. For context the Mintec Benchmark Prices (MBP) for standard 5% almonds were assessed at $2.20/lb on a FAS US basis on 15 July (16:00 BST/08:00 PDT), up 26 cents/lb from the previous assessment period and the highest price since 23 April 2020. New crop standard 5% almonds were being offered at a 10 cent premium to current crop with price submissions ranging from $2.30-2.35/lb for Q4. Some business was reported to have been done at the lower end of this range, with transactions reported at $2.30/lb.
• New York arabica coffee futures rallied last week, with the SEP21 contract up 6.5%. This was partly driven by roasters taking some additional cover in the low 150s region, with the COT report showing that producers added about 5k lots to their long position. Some weather models are also showing potential frost risk in Brazil over the next few days, although there does not appear to be consensus across all models. The Mintec Benchmark Prices for Brazilian coffee were unchanged at -8c/lb for Santos 2/3 17/18 FC and -18c/lb for MTGB 3/4 GC. London robusta prices also rose slightly; the Mintec Benchmark Prices for Vietnamese Robusta gr. 2 5% b&b fell from level to the NOV21 contract to a discount of -$50/mt.
• Cocoa terminal prices in London rallied sharply last week before retracing and closing only slightly up week-on-week. Last week saw the release of Q2 grindings figures. North American grindings were up 11.7% y-o-y, and Asian grindings up 8.98%, both at the upper end of expectations, with grindings volumes now broadly in line with pre-pandemic levels. The big story however was European grindings, which were up 13.6% y-o-y. However, commentators were quick to note that a good portion of origin grindings have moved to Europe following power shortages in West Africa, and that these figures may skew the overall demand picture for Europe which still remains somewhat subdued although with clear signs of recovery. Markets seem to have taken this to heart, with the New York cocoa price slightly down w-o-w on Friday.
• The Mintec Monthly Glass Survey for June showed that glass prices in Europe saw price increases for soft-drink bottles, alcoholic beverage glass bottles and glass food containers, while Asia saw increases in soft-drink glass bottles and glass food containers. For the UK, glass price increases were only reported for food containers, with other products remaining unchanged month-on-month. No region showed month-on-month price decreases and energy costs were stated as the key driver for the price increases. In fact, the EEX front-month baseload prices in Germany and France both rose in excess of 25% between May and June.