Here is the Mintec Pricing update for the past week. Feel free to get in touch if you have any questions:
• In the almond market, the drought situation in California was once again brought to global attention last week with the California State Water Board approving emergency curtailment measures for the Delta watershed on 3 August. This measure could see 5,700 water right holders (86%) in the Delta watershed ordered to curtail water diversions within the next two weeks.
Related to this announcement, one seller commented – ‘We’ve been offering limited volumes for Q4 shipment and nothing beyond that as we thought this situation might get worse. Given the new water restrictions we’ve had to increase our offer pricing to try and get a decent return.’
• Cocoa futures firmed slightly over the week, with managed money shorts in London closing their position by over 6,000 lots. Weather conditions were both drier than average last week, with the potential to stunt main crop development should they persist. Weather models currently forecast cooler-than-average temperatures later this week, to be accompanied by ample rainfall.
• The Mintec Benchmark Price for Olive Oil EXW Andalusia fell €0.05/kg on a lack of demand from buyers and bottlers who are currently well covered. This caused some market players to lower offers in an attempt to attract buying interest.