Palm Oil
• At the close of trading last week, market sentiment in the palm oil market was BEARISH.
• The bearish sentiment was partly due to profit taking on the Malaysian futures market. However, a general consensus is emerging that the price increases after the Indonesian export ban which came into effect on 28 April were overdone. Market participants commented to Mintec that, “even with the bullish fundamentals provided by the Indonesian export ban, prices were too high. Buyers have pulled back and demand is lacklustre, and now all eyes are moving to Malaysian April production and exports.”
• The Mintec Benchmark Prices for Palm Oil CIF Rotterdam DH-0 [Mintec Code: CPOR] was assessed at $1,679.50/mt on Friday, down $170.50/mt on the week.
Dairy
• At the close of trading last week, market sentiment in the dairy markets was MIXED.
• Many dairy prices declined last week, and uncertainty surrounding Chinese demand has weakened international demand.
• For example, the assessment for Whole Milk Powder EXW Europe [Mintec Code: J118] was made at €5,000/mt on Thursday, down €200/mt week-on-week.
Pork
• At the close of trading last week, market sentiment in the European pork market was NEUTRAL.
• All major European pork-producing countries saw their prices trade sideways amid unchanged market sentiment.
• The Mintec Benchmark Prices for Pig Deadweight Grade S EXW Europe [Mintec Code: BW56] was assessed at €1.93/kg on 3 May, unchanged again on the week.
Almonds
• At the close of trading last week, market sentiment in the almond market was NEUTRAL.
• Limited trading was reported over the course of the assessment period with the releases of the USDA almond acreage report and the Land IQ estimate coming in close to industry assumptions, which did not significantly alter existing supply and demand assumptions.
• Industrial almonds traded in a tight range, with the assessment for standard 5% Almonds FAS US [Mintec Code: NAL1] made at $1.75/lb on 5 May, down 2 cents/lb on the week and in line with the last reported trade.
• Prices for larger sized snacking quality kernels strengthened slightly with supplies of NPX remaining tight. For reference, the Mintec Benchmark Prices for NPX 23/25 FAS US [Mintec Code: NP01] were assessed at $2.65/lb, up 1 cent/lb on the week.
Coffee
• At the close of trading last week, market sentiment in the coffee market was MILDLY BEARISH.
• Futures prices continue to soften with speculators continuing to trim their long positions and new shorts entering the market. This is being in part triggered by prices dipping below a number of technical indicators that have given speculators more confidence in a bearish market. Fundamentals remain broadly unchanged from previous weeks. The ICE Arabica forward curve has also entered backwardation, with SEP23 dated contracts and beyond breaking below USc 200/lb for the first time since mid-March.
• Most differentials have continued to move higher as the futures prices have eased, with the Mintec Benchmark Prices for Colombian Excelso EP FOB [Mintec Code: CDC1] last assessed at +68/lb on Thursday, up 1 cent on the week.
Cocoa
• At the close of trading last week, market sentiment in the cocoa market was MIXED.
• Choppy trading continues, with ICE London futures prices rallying in the first half of last week before giving up much of those gains in the second half of the week. Recent rains have assuaged some fears that smaller beans would persist throughout the mid-crop harvest which has just begun.
• The Mintec Benchmark Prices for Cocoa Butter EXW Western Europe spot [Mintec Code: COBS] were assessed at €4,159/mt, up €10/mt on the week.
