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Pricing Update May 24 2021

May 24, 2021

2 mins read

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

    • Cocoa bean prices in London fell 4.5% throughout the week as producer longs engaged in some profit taking, extending the net short position back to levels seen in early April. The Mintec Benchmark Prices for cocoa butter (COBS) and cocoa powder (COPL) both rose as of Wednesday’s assessment on the strong bean prices over the previous week, though spot ratios have remained broadly unchanged.

  • • Arabica coffee ICE prices rose 3% on the week as new USDA country-level estimates reinforced the pessimistic views of Brazil’s 21/22 crop, which is currently around 11% harvested. USDA estimates show a 21/22 production of 35m bags of arabica, down 29.6% from 49.7m bags in 20/21, and down 16.6% from the previous off-cycle crop in 19/20. Mintec Benchmark Prices for Brazilian diffs (CDB1 and CDB2) and Colombian Excelso (CDC1) however also rose last week – in Brazil, traders expressed the view that the current ICE price level is temporary, and they are holding off on selling in order to attract higher terminal prices. In Colombia, ongoing port strikes are holding up around 600k bags of exports, with shipments to the US delayed by around five weeks.

  • • Palm Oil was particularly volatile last week, losing $25/mt after several weeks of gains. Reasons include a lower soybean and oil complex, with the COT weekly report showing that speculators of soybean trimmed their net long positions by over 22k contracts last week. Adding to the uncertainty are the question marks around what demand may look like from India with the ongoing high levels of Covid-19.

  • • Rapeseed Oil had a similarly volatile week, being pressured by the overall edible oil complex move downwards but also by weather conditions easing somewhat in drought-ridden Canada. This helped to ease some fears of an even shorter-than-predicted crop, but it should be noted that market participants suggest vastly more rainfall is still needed.

  • • Almond sellers began to return to the market at the latter half of last week with reduced offer pricing following the higher-than-expected USDA subjective almond forecast. For additional detail on the USDA forecast and market impacts click here. On the back of this, prices on most grades slipped with the Mintec Benchmark Prices for Standard 5% almonds down 7 cents/lb on the week to $1.79/lb on Thursday (24 May).

  • • Mintec is hosting a free-to-attend conference on Nuts and Plant-Based Proteins on 2-3 June. You can register here.



Topics: Other
Mintec Team
Mintec Team

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