Market Report – August
On the global market, palm prices have continued to decrease steadily. Reasons for this include reduced global demand which is partly due to the ongoing uncertainty around the US-China trade war. We are also heading towards the peak production times which will put pressure on prices. It is thought that prices may be reaching a natural low, in part because current prices should now see interests start to rise from more price sensitive countries.
We are currently seeing prices rising from most origins on lard. With African swine fever reducing the Chinese pig herd by 20%, this has led to China buying up stocks of lard on the world market. Until Chinese pig numbers increase, expect prices to remain high on all pork products, including lard and bacon.
The price of almonds has increased recently and shows no sign of easing. Recent reports from California, show that both the number of nuts and the average nut size were well below estimates. If these reports prove to be correct then higher prices could be around for quite some time.
The new Turkish sultana crop is looking very good. Estimates are in the rage of 350,000 tonnes which makes this a large crop. With no frost damage and little chance of fungal issues, it seems likely that when new crop is available in September, we should see prices come down.
Egg markets throughout Europe are oversupplied, especially the British free-range market. The excess egg is keeping prices artificially low with some manufacturers even losing money just to move egg. Many flocks are subsequently being reduced in number so current prices are not expected to last long term. However, the effects of these measures will take time to reach egg production, so prices will remain low for a little while longer.
Stewart Humphrey, Purchasing Director
Information correct as of: 09.07.19