The Grocer – 24 August 2019

analysis commodity prices

14 | The Grocer | 24 August 2019 Get the full story at thegrocer.co.uk

● Bananas: Banana grow-

ers in Colombia have con-

fi rmed the arrival of the

Panama TR4 disease – the

soil-dwelling fungus that

has devastated plantations

across south-east Asia. The

Colombian Agriculture

and Fishing Institute has

declared a “national emer-

gency” and expanded con-

trol measures nationwide to

contain the disease.

● Pesticide: Scientists at the

University of Sheffi eld and

chemical giant Syngenta are

developing a natural alter-

native to pesticides that tar-

get specifi c pests without

harming pollinators. The

treatment uses a form of bio-

control – which uses natural

mechanisms such as preda-

tion and parasitism to tar-

get plant pests, according

to research published in the

Analyst scientifi c journal.

● Dairy: Global fresh and

processed dairy consump-

tion is expected to rise by

2.1% and 1.5% a year respec-

tively from 2019 to 2028,

according to latest research

by the OECD and the UN’s

FAO. R i si ng con su mpt ion

in developing countries is

expected to drive the major-

ity of growth.

prices digest

Skipjack tuna prices fell to their lowest level since 2015 in Bangkok

T

una prices have hit a
four-year low amid plen-
tiful supplies and sub-
dued demand.
Thai Union reported this
month that profi ts had surged
13.1% in the second half of 2019
thanks to a signifi cant drop in
the price of tuna, which repre-
sents “more than half of canned
tuna’s production cost”.
On average, raw material
prices for canned tuna were
down 27% year on year at $1,
per tonne in the second quar-
ter of 2019, said the company,
which owns Princes in the UK.
According to latest fi gures
from the FAO, skipjack tuna
prices reached $1,000/tonne in
Bangkok in July – the lowest
level since 2015, while prices in
Spanish canneries hit €1,100/
tonne in the same month.
“Tuna prices have dropped to
their lowest level in four years,
and canned tuna demand is
reportedly very weak in the
major markets, particularly in
Europe,” said the FAO report.
The “weak” consumer
demand for canned tuna comes

Drop in tuna prices

ups supplier profi ts

as “raw material inventories at

Thai canneries remain close to

full capacity”, noted the FAO.

Skipjack tuna supplies

increased worldwide in 2018,

with improved catches in most

of the fi shing zones compared

with 2017.

However, the FAO predicted

there would be “some improve-

ment” in tuna prices over the

coming weeks. “Lower raw

material prices should lead to

lower retail prices and encour-

age supermarket promotions of

canned tuna in Europe and the

US,” it said.

The three-month closure on

fi sh aggregating devices (FAD)

in the Western and Central

Pacifi c – aimed at taking pres-

sure off juvenile stocks – also

started on 1 July and fi shing is

“reported to have slowed to a

moderate rate,” the FAO added.

Prices for skipjack tuna in

Bangkok have already started

rising from last month’s lows,

according to analysts at Informa

Agribusiness.

Carina Perkins

CURRENCY PRICE CHANGE CHANGE

WINNERS & LOSERS

price per

tonne m-o-m % y-o-y %

Key climbers

Tea (Kenya) USD 2.8 8.4 –9.

Gas (NBP) (UK) GBP 31.8 7.1 –49.

Rapeseed oil (R’dam) EUR 780.9 5.3 7. 3

Rice white (Thailand) USD 417 3.5 5.

Barley malt (France) EUR 171 0.6 –30.

Key fallers

Arabica (ICE) (NY) (US) US cent 103.3 –9.2 –6.

Crude oil (ICE) (EU) USD 57.6 –6.9 –20.

Wheat feed (ICE) (EU) GBP 142.7 –6.6 –25.

Orange conc (ICE) (NY) US cent 107.4 –5.0 –32.

Alumin’m alloy (LME) USD 1,205 –6.2 –24.

Source: Mintec. Note: All prices are indicative only and are representative within the country quoted

Kenyan tea prices have
rebounded aft er a slump in
July. Lower supply (down 9%
year on year) has weighed
heavily on Mombasa’s August
auction prices.
Thai rice prices have risen
year on year and month on
month, driven by concerns
about droughts , which have
encouraged demand as buyers
move to secure stocks in case of
a shortage.
Crude oil prices dropped
in July thanks to increasing
concerns about demand from

the EU and China and rising

crude inventories in the US.

US crude stocks grew by 1.

million barrels to 440.5 million

barrels, up 3% on the fi ve-year

average for August.

Meanwhile, orange juice

concentrate prices are down

both month on month and year

on year, with US inventories up

13% year on year.

Commodity and Wholesale prices data

supplied by Mintec. Mintec is the principal

independent source of information for

commodities and raw materials. Mintec

monitors the key factors that are vital for efficient

procurement and provides sophisticated tools for analysing

and interpreting market information. http://www.mintecglobal.com

commodity prices: Kenyan tea prices rebound