August Market Report
Butter prices have been steadily increasing over the past few months. However, we have seen them stabilise recently. Projections say that small decreases may be seen in the near future, but the overarching trend is sided on increases.
Thanks in some part to the sugar tax, recent reductions have been seen in the price of granulated sugar. Prices are lower than we have seen for some time but how long these decreases can continue is unknown. However, the prices of specialty sugars should start to follow those of granulated soon.
Estimates at present for the 2018 Greek currant crop are higher than the 2017 actual crop. However, the estimated 2018 crop will still fall under-average for the last five years. New crop harvest is expected to start mid-August and, when stock becomes available, if all is well and crop estimates prove accurate, we would expect prices to open just under the closing levels for 2017.
Palm oil prices have fallen in USD over the past few weeks, due to weak demand. The weak sterling has offset some of these reductions. In the coming months there are several factors that could see prices increase. The US/China trade tariffs and the increase in Indian import taxes on soft oils may lead both India and China, to see palm oil as the next best alternative. Both large markets could give demand a big spike.
With prices lower than this time last year, it is probably safe to say that the fipronil crisis is fully behind us. With the heightened production and reduced demand that summer brings, prices are expected to remain stable until the Christmas production starts around mid-September.
Free-range egg is currently at a low as the market is swamped with supplies. However, with the more volatile nature of free-range egg pricing this low price may not remain for as long.
All reports of frost have passed, and a record crop has been reported out of California, meaning prices in USD have dropped recently. There are some concerns about America applying new trade tariffs for the EU, which has weakened sales and reduced prices in USD. Weak sterling has offset both reductions and prices overall are stable.