May Market Report
Butter has seen big decreases since the start of the new year. However, as prices have decreased demand has increased. Demand is currently outstripping supply and there are concerns that there will not be stock of milk to keep up with butter demand. Expect prices to firm in the near future.
Pricing on sugar remains stable and looks set to do so for the near future. The main driving factor is currency. If FX rates remain favourable, then pricing is set to stay stable.
Crop availability is still the major issue when it comes to currants. Due to issues with the 2017 Greek crop, the demand for other origin currants is dramatically increased. Prices look set to increase for the foreseeable future.
Almond shipments were 8% up for March year on year. This combined with good reports of an expected 10% increase in crop from California have led to an easing on prices. Though until official figures are released on California crop the long term is uncertain.
Egg prices have fallen continually since the start of 2018, as the effects of the Fipronil crisis have abated. As demand has eased after Easter prices have fallen again. Pricing is now dependent on where demand goes from here on. If we maintain a stable demand, then prices should remain at current rates.
Exchange rates have helped palm oil prices ease slightly. As we see new contracts for bakery fats come through there should be some easing in price.
Product is running low on dates out of Pakistan, with new crop not available till October, this will put pressure on other origins. Prices have seen some increases already; if other origin dates cannot meet demand, expect prices to increase further.