Well not much change on foreign exchange! Lots of uncertainty surrounding the Euro and US$. No strength to Sterling as likelihood of interest increases diminishes until mid-2012 at the earliest. Overall the US$ probably looks in the worst shape, so expect sterling to remain stronger here for the time being.
Pumpkinseed kernels:
As the planting quantities become roughly established it appears the Chinese Governments pressure to increase acreage of corn and soya has worked and taken away 50% of the GWS areas, so quantities will be significantly down. For shine skin we anticipate similar quantities to previous seasons but the price will increase more or less in line with the GWS. A lot of forward cover has been taken by European buyers, who do not see much chance of a decline in the 2011/12 season.
Sunflower seed kernels:
The USA, has more or less written itself out of the 2011/12 supply season. In China the strong demand for oil continues to put pressure on bakery seed, which can be found trading at a premium over the confectionary grades. Bird food demand remains strong since the Chinese seed is preferred by many buyers to Eastern European supplies. Argentina is sold out as usual, so Bulgaria has the market. Plants are closed for August awaiting the new crop. A lot of business has been written already and prices are starting to move.
Linseed:
The English crop is starting to come in and the quality looks quite good. Quantities are still not known. Generally UK seed is trading at a premium over Eastern European, due to certainties on the GM issue. For East Europe the weather has been kind so we expect good harvests. The situation in USA/Canada though is poor, and although not important as suppliers to Europe, the shortfall of almost 50% in expected volume will impact on prices worldwide.
Sesame seed:
India Demand in India is continuing quite strongly from non-European destinations and prices have moved up. European demand is slow, but there is seed required to be purchased. When this starts, it should firm prices further. Indian harvest is expected in November, and the premium sources in India are now sold out, so new sales are sourced from the lower quality regions. In Africa there is carryover of stocks, all due to the weak demand from China this season, against everyone’s expectation.
Central American: Paraguay, Guatemala, Nicaragua are more or less sold out. Venezuela has some seed but as usual logistical issues make it difficult to ship. Seed plantings occur in August/September and we await news on the acres contracted.
Hulled millet:
Stocks pretty much exhausted from everywhere, a tight position developing. The USA situation is concerning with poor weather, and lower supplies. Eastern Europe is still waiting and new crop prices are not declared. Make sure you have cover until November.
Poppy seed:
There will be a carryover in Czech Republic, but for those buyers not wanting low morphine material, this is not going to impact significantly. Other origins are harvesting and crops look good, but price expectation is firm.
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We hope this brief update assists and look forward to hearing from you in due course.
Telephone 0044 (0)1372 230020
Fax: 0044 (0)1372 748597.
www.unicorningredients.com
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