Here is the Mintec Pricing update for the past week. Feel free to get in touch if you have any questions:
• London Cocoa futures rallied on speculative buying, with the second month (DEC21) closing above £1,800/mt for the first time since March 2021. GBPUSD sank to 1.3630, the lowest point since January. Speculators in London increased their long positions by over 10,000 lots to 22,524, whilst also trimming shorts by over 14,000 to register -12,115, leaving their net long futures position now at 10,409 lots (an increase of nearly 25k lots in a single week). In New York, a similar story played out, with the managed money net position swinging from -4,940 net short the previous week to 24,257 net long last week.
With spot butter ratios easing slightly, the Mintec Benchmark Prices for Cocoa Butter EXW Western Europe [Mintec Code: COBS] saw a modest increase, however the Cocoa Liquor EXW Europe price [Mintec Code: 0A09] increased nearly 4% week-on-week as the higher terminal price coincided with stronger ratios.
• The Mintec Benchmark Prices (MBP) for standard 5% almonds [Mintec Code: NAL1] were assessed at $2.46/lb on 19 August, up 11 cents/lb from the previous assessment. Increased interest was reported during the assessment period as buyers looked to lock in supplies. This was also the case on snacking grades with sellers noting a significant increase in inquiries from Europe.
In particular larger sized nonpareil kernels saw the largest increases with a lack of offers over concerns over new crop kernel sizing acting as a bullish factor. For reference the MBP for NPX 23/25 FAS US [Mintec Code: NP01] was assessed at $3.37/lb, up 27 cents/lb on the week.
• Durum Wheat continued its upward trend last week with Durum Wheat Fino EXW Central Italy [Mintec Code: WJ98] gaining €20/mt and Durum Wheat Fino EXW Northern Italy [Mintec Code: WI14] moving upward by €18/mt. Concerns over potential reductions of some 40% in the new North American crop due to dry weather have supported prices.
• The Mintec Benchmark Prices for Rapeseed Oil FOB Rotterdam [Mintec Code: RSOR] gained €69.50/mt by Thursday 19 August however surrendered some these gains on Friday 20 August ending the week €59/mt higher. The rapeseed oil market was bolstered by a real lack of physical oil available, causing a minor scramble for buyers who were short physical and in need of the oil for immediate use.