Selected Commodities Pricing Update 25th September

*The table displays the highest week-on-week price movers within Mintec Benchmark Prices, focusing solely on absolute values and excluding differentials.

Potatoes

• Market Sentiment: As of the last trading week, the market sentiment for potatoes in the EU has been bearish.
• The bulk of the harvest which was delayed is available on the market, resulting in the early and maincrop entering the market at the same time, creating an oversupply. Many processing manufacturers have fulfilled their orders with contracted volumes, leaving little demand on the free-buy market. It is also expected by the NEPG that production in the 2023/24 market year will increase compared to the previous MY.
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• Market observation: According to market sources, some growers are trying to offload their potatoes to the factories as soon as possible as there are quality issues.
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• Price Assessment: The Mintec Benchmark price for Potato processing Fontane BE (MBP) ( Mintec Code: POFO) was assessed at €125/MT, down €35/MT compared to the previous week

Sweet Whey Powder (SWP) Feed

• Market Sentiment: As we enter Q4 2023, SWP feed market sentiment was bullish.
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• Market observation: There are still reports of high stocks in some producers in Southern Europe, but traders continued to bid higher during last week due to upward price expectations for the last quarter of the year.
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• Price Assessment: The Mintec Benchmark Prices for Sweet whey powder feed grade exw DE (MBP) was assessed at €640.00/mt, up €70.00/mt compared to the the previous week.
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High Fructose Corn Syrup

• Market Sentiment: As we approached the final week of summer, trading for sweeteners like high fructose corn syrup was bullish. Demand was higher than anticipated throughout the summer, causing prices to remain elevated.
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• Market Observations: Suppliers are expected to release contract values for items like corn sweeteners and syrups this week. Prices are likely to remain unchanged at elevated values until then. Most players are taking a ‘wait-and-see' approach and plan to shop around once offers are made for 2024.
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• Price Assessment: The Mintec Benchmark Prices for high fructose corn syrup 42% spot Midwest and high fructose corn syrup 55% contract Midwest stood at $0.33/lb and $0.35/lb respectively, an increase of $0.03/lb from the previous week.

Corn (Maize)

• Market Sentiment: At the close of trading last week, market sentiment in the corn market was bearish.
• Corn prices approached the seasonal ‘bottom’ in all directions. Lack of demand and plentiful global supply have pressured corn prices downwards.
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• Market Observations: According to market players, the next few weeks will be crucial for the market in terms of US weather development. The renewed heat in the US could lower corn yields, although the risk of a corn price increase is easing due to plentiful global supply. Market players are also monitoring US export sales and developments in the Black Sea region.
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• Price Assessment: The Mintec Benchmark Prices for Ukrainian corn (maize) cpt was assessed at $144.75/mt, down $9.40/mt compared to the previous week.

Hazelnuts

• Market Sentiment: Hazelnut production in Turkey is unlikely to reach the officially estimated volume of 720,000-810,000 tonnes following adverse weather during the maturation stage. Some market sources now peg the output as low as 620,000 tonnes which has led to a bullish market sentiment in the past few weeks.
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• Price Assessment: The Mintec Benchmark Prices for diced hazelnuts of Turkish origin delivered on a DDP basis Germany were last assessed at €7.20/kg during the week of 20th September, an increase of €0.55/kg from the previous week. Prices have been rallying significantly since the second week of August.

Sunflower Oil 

• Market Sentiment: As of the last trading week, market sentiment for sunflower oil has been notably bearish.
• The predominant factor pressuring prices is the anticipation of substantial sunflower seed harvests in Ukraine and Russia in the forthcoming months. Estimates from market players point to Ukrainian production reaching 14.5 million metric tonnes, with Russia expected to yield approximately 17 to 18 million metric tonnes. Should these projections materialise, it implies an oversupply of sunflower seeds and oil, contributing to an overall surplus in the market.
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• Market Observations: Industry participants are closely monitoring early-week buying patterns to assess whether the lowered prices will attract increased buying activity, potentially adding upward price pressure.
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• Price Assessment: The Mintec Benchmark Prices for Sunflower Oil FOB NW Europe 6 Ports Option Spot (Mintec Code: SFOR) stood at $855.50/mt at the end of the trading week, marking a decrease of $53.00/mt compared to the previous week.