The Grocer – 17 August 2019

analysis commodity prices

14 | The Grocer | 17 August 2019 Get the full story at thegrocer.co.uk

● Beef: Scotland’s beef sec-

tor should create a producer

organisation involving all

large-scale cattle  nishers

to cope with the pro tabil-

ity crisis across the sec-

tor, industry stakeholders

have suggested. The idea

was aired at a Scottish gov-

ernment-sponsored beef

summit this week, Farmers

Guardian reported, and met

with strong support.

● Trade: The Commons

Trade Committee has

launched an inquiry into

the relationship between

international trade and the

environment. The commit-

tee will examine how the

government should address

environmental issues in its

trade and investment policy.

● Solar power: The

University of Birmingham

has teamed up with inter-

governmental organi-

sation the International

Solar Alliance, for a pro-

ject to help spread the use

of solar and solar-hybrid

cooling systems for agricul-

tural use in Tropical coun-

tries. Improving cold supply

chains in the region could

help reduce food wast-

age and increase farmers’

income, the pair said.

prices digest

UK feed wheat futures dipped to a low of £143.0 per tonne this week

W

heat prices have fallen
to their lowest level in
over 12 months amid
turbulence in global grains
markets.
UK feed wheat futures
(November 2019) dipped to
£143 .0/tonne on Tuesday, 3.5%
down on the average in July
2019 and their lowest level since
March 2018.
It follows a dramatic drop
in Chicago wheat and maize
futures, which both plummeted
6% on Monday in reaction to the
USDA’s latest World Agricultural
Supply and Demand Estimates
(WASDE) report.
The WASDE report raised US
maize production estimates to
353.1 million tonnes, which is
5.4% above average industry
expectations, said AHDB ana-
lyst Aidan Wright this week.
“Increased yield expectations
meant that US maize produc-
tion estimates were raised from
July’s report, despite a fall in
planted area,” he added.
The USDA revised down
global wheat ending stocks by
1.1 million tonnes but they “are

Wheat prices slump

as market struggles

still estimated to be at record

levels”, Wright said.

UK wheat futures have fol-

lowed a downward trend since

peaking at £186.3/tonne in July

2018, when Europe was in the

grip of a prolonged heatwave.

The UK, France, Germany

and Poland are all expecting

bigger crops this year due to an

increase in planted areas, with

harvests largely unscathed by

this summer’s hot weather.

The so wheat crop in France

is expected to reach 28.2 million

tonnes, which is up 12% year on

year and would be the country’s

largest since 2015.

The UK is also expecting a

bumper wheat crop this year.

AHDB’s early bird survey

released in late 2018 suggested

the planted area for wheat is the

biggest since 2014.

Ex-farm volumes of feed

wheat for August delivery

reached 59,000 tonnes, which

marks a “signi cant rise” on

previous weeks and is “a signal

of large crops”, said Wright.

Carina Perkins

CURRENCY PRICE CHANGE CHANGE

WINNERS & LOSERS

price per

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

Key climbers

Coconut oil (R’dam) USD .  . –.

Palm oil crude (R’dam) USD .             . –.

Cocoa powder (EU) GBP ,            . .

Soybean oil (NW) (Eur) EUR . . .

Sunflower oil (NW Eur) USD             . .

Key fallers

Electricity (UK) GBP . –. –.

Gas (UK) GBP .  –.  –.

Arabica (ICE) (NY) (US) US cent . –. –.

Cocoa bean (Ldn ICE) GBP,. –. .

Rye bread (Germany) EUR . –. –.

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

A 20% increase in coconut oil
exports from the Philippines
in the  rst half of the year saw
prices rise month on month.
Palm oil prices are also up
month on month thanks to a
rise in demand from China. The
country’s trade dispute with
the US has forced it to look for
alternative oils, like palm oil.
Heavy  ooding in the
major US growing regions for
soybeans has caused month-
on-month and year-on-year
price rises for its oil. According
to the U S D A , the 2019/

harvest area in the US will be

14% down on the year before.

Meanwhile, sun ower oil

prices are up on last month

in line with seasonal trends

ahead of the harvest. Its major

exporter, Ukraine, estimates

a fall in production this year,

which has caused year-on-year

prices to increase.

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: palm oil prices on the rise