Here is the Mintec Pricing update for the past week. Feel free to get in touch if you have any questions:
• Arabica coffee terminal prices fell by over 4% on the front month as sporadic rainfall was seen over parts of Brazil’s coffee-growing regions, slightly assuaging fears over the potential impacts to the 22/23 crop. Balance sheets continue to revise the 20/21 crop close to industry estimates of 70m+ bags, and both certified and non-certified stock levels continue to grow, giving some credence to the idea that current levels could still meet demand in 21/22 despite the much smaller crop forecasts for Brazil. Despite a stronger US dollar in most currency pairs, USDBRL continued to weaken to 4.9954 on Friday before retracing later in the day. Consequently, the Mintec Benchmark Prices for Brazilian differentials remained unchanged on the week, with few sellers in the market and high domestic prices continuing to provide support.
• Prices in the almond market firmed up last week following the release of the May position report on 10 June. The Mintec Benchmark Prices for standard 5% almonds FAS US were assessed at $1.90/lb on 17 June, up 5 cents/lb from the previous week. Demand was reported to be heavily regionalized with buyers in Europe remaining well stocked and showing limited interest at current price levels. At the same time demand for inshells out of Asia remained steady and sales into India and China were relatively brisk.
• Sunflower oil moved down significantly from all origins again last week. The Mintec Benchmark Prices for SFO 6 ports option lost $180/mt, while the Mintec Benchmark Prices for SFO FOB Ukraine also showed further downside moves, losing $220/mt. Market participants noted that the market was moving lower on a lack of demand for oil crop oil, coupled with an overabundance of supply with promising estimates on the new sunseed crop, particularly in Ukraine. The lower prices were however attractive to some market players as it was heard India on June 18 purchased around 20,000mt for July delivery at $1100-1125/mt.
• The Mintec Benchmark Prices for Crude Rapeseed oil FOB Rotterdam also moved down €170.50/mt. Volatility and downward price moves in the competing vegetable oil complex combined with harvest pressure from the oncoming rapeseed crop proved bearish. Market participants noted that demand was apparent for forward delivery highlighting JFM 2022 (January, February and March) and MJJ 2022 (May, June and July) as being particularly active.