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Mintec Commodity Pricing Update - 21 February

February 21, 2022

4 mins read

  • Please see below the Pricing update for the past week. Feel free to get in touch if you have any questions:

    Almonds

    • At the close of trading last week, market sentiment in the almond market was BEARISH.
    • Prices dipped as trading resumed following the release of the January position report. The size of the carryover into next season remains a key talking point with some market commentators now estimating that ending stocks could reach between 900-1000 million pounds.
    • Conditions for bloom remain good, but season-to-date precipitation continues to trend significantly below average.
    • The Mintec Benchmark Prices for standard 5% almonds FAS US [Mintec Code: NAL1] were assessed at $1.75/lb on 17 February 2022, down 6 cents/lb (-3%) on the week.
    • For further information on key market drivers see the Mintec Weekly Almond Market Update in the Mintec Analytics platform.
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  • Cocoa

    • At the close of trading last week, market sentiment in the cocoa market was NEUTRAL.
    • ICE terminal prices in both London gave up most of their previous gains earlier in the month as arrivals in ports have started to outpace the previous year.
    • There was some light rainfall across cocoa growing regions in west Africa, however more will be needed to ensure that the mid-crop develops well and does not suffer from smaller pods, so precipitation over the coming weeks remains a crucial factor.
    • According to industry sources, cocoa powder is virtually unavailable until Q3 2022, particularly for alkalised powder. Most powder that is being traded is being offered with the stipulation that an equal amount of cocoa butter must be purchased.
    • On 16 February 2022 the Mintec Benchmark Prices for Cocoa Butter EXW Western Europe [Mintec Code: COBS] were assessed at €4,216/mt, unchanged on the week due to the easing ratio.
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  • Coffee

    • At the close of trading last week, market sentiment in the coffee market was MILDLY BULLISH.
    • The drawdown in certified stocks continues, whilst GCA stocks in the US edged down very slightly in January. Seasonally, this tends to be a low point in stock levels. Serious questions remain about the cert stock drawdowns, and whether this is caused by European buyers de-risking their shipping costs or whether there are serious supply shortages at origin.
    • Differentials were largely unchanged amid very thin trading – in Honduras, a typical origin for cert stocks, very little coffee is trading as suppliers continue to withhold offers waiting for higher prices. Local cash prices have jumped to their highest levels ever.
    • On 17 February 2022 the Mintec Benchmark Prices for Brazilian MTGB 3/4 GC [Mintec Code: CDB2] were assessed at -18 cents/lb, unchanged on the week.

  • Dairy

    • At close of trading last week market sentiment in the European dairy market was BULLISH across all commodities.
    • For milk powders this sentiment was driven by continued strong demand, especially from export markets such as the Middle East and North Africa, which is increasing competition for European buyers looking to secure cover.
    • The Mintec Benchmark Prices for Skimmed Milk Powder EXW Europe [Mintec Code: J117] were assessed at €3,620/mt on 17 February 2022, up €30/mt on the week.
    • For further information on key market drivers see the Mintec Weekly Dairy Market Update in the Mintec Analytics platform.
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  • Palm Oil

    • At the close of trading last week, market sentiment in the palm oil market was BULLISH.
    • The key driver behind this was continued production issues and increased exports from Malaysia sapping the already low stock levels – reported to be the lowest since July 2021.
    • Reflecting this the on 18 February 2022 the Mintec Benchmark Prices for Crude palm oil CIF Rotterdam [Mintec Code: CPOR] were assessed at $1,480.50/mt, up 3.53% on the week.
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  • Pork

    • At the close of trading last week, market sentiment in the European pork market was NEUTRAL.
    • The overall supply and demand balance remained unchanged with a continued state of oversupply in the European Pork market. There were some reports of Asian buyers turning towards pork in the face of high beef prices, but this has yet to produce a significant uplift in pork pricing.
    • Deadweight prices in the European pork market dipped slightly this week with the Mintec Benchmark Prices for Pig Deadweight Grade S EXW Europe [Mintec Code: BW56] assessed at €1.41/kg at the last assessment on 15 February 2022, up €0.01/kg on the week
    • For further information on key market drivers see the Mintec Weekly Pork Market Update in the Mintec Analytics platform.
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  • Rapeseed Oil

    • At the close of trading last week, market sentiment in the European rapeseed oil market was BEARISH.
    • Driving this was continued low demand from both the food and biodiesel industries which weighed on prices, despite low stocks of rapeseed oil stocks at a EU and global level.
    • Reflecting this the on 18 February 2022 the Mintec Benchmark Prices for Rapeseed Oil FOB Rotterdam [Mintec Code: RSOR] were assessed at €1,469.50/mt, down 0.68% on the week.
    • For further information and a deeper dive on key market drivers see the Mintec Weekly Vegetable Oil Report in the Mintec Analytics platform.
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  • Wheat

    • At the close of trading last week, market sentiment in the wheat market was MILDLY BEARISH.
    • Despite a small move down the market is heavily reliant on news around the Russian/Ukraine geopolitical conflict. This is because should Russia invade the Ukraine, a large proportion of the global wheat market would be inaccessible to the global buyers since the exporting of wheat would not be top of either nation’s priorities. Alternatively, should the geopolitical conflict de-escalate itself further, it is possible that wheat prices continue to ease according to industry sources.
    • Reflecting this the on 17 February 2022 the Mintec Benchmark Prices for Milling Wheat DDP Rouen (France) [Mintec Code: WROF] were assessed at €258/mt, down 0.39% on the week.
    • For further information and a deeper dive on key market drivers see the Mintec Weekly Grain Report in the Mintec Analytics platform.
Pricing Team
Pricing Team

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