FX   Monthly movement

US$/£1.60 unch from 1.6

US$/€ 1.37 up from 1.335

£/€ 1.17 unch from 1.17

Sterling has been volatile over the last few days and ended the month where it started. Generally the feeling longer term is that sterling will weaken through 2011, and the current strength of the Euro is short lived, lasting until the next financial crisis in this region. Otherwise Chinese commence their celebrations for New Year this week, so shipments will be limited until end February.

Pumpkinseed kernels: the situation remains constant, demand is sluggish, and the ingredient has not been re formulated back into people’s recipes. Prices seem stable for the time being. Stocks are in the hands of exporters, who can afford to finance the material. Interest in shine skin is very low at present.

Sunflower seed kernels:  With USA experiencing strong domestic demand, Argentina sold out and demand for all vegetable oils firm, there appears to be no weakness in sight. In fact at present sunflower is stronger than soya and other oils. This is because of demand from bird food suppliers for the product. This is expected to continue for several weeks. The other concern is that Turkey is likely to start importing seed from Bulgaria, since they are short over 1 million tonnes. With a significant amount of the crop still with farmers speculating on higher prices, it is possible this region will increase its prices very soon. China remains stable since prices are government controlled. The gap is closing.

Linseed: Prices edge upwards, since there is no fresh material becoming available, and suitable, GM free stocks are limited. We do not see the situation reducing until new crop. First indications are that new crop will continue at similar levels.

Sesame seed: Indian market remains steady with poor demand. Sellers keep lowering prices, but this means a reduction in quality and an increase in salmonella risks. Good value premium quality seed is a good buy at present from reputable accredited facilities. Africa has a good harvest in both Sudan and Ethiopia. China is still to buy from this region, and this should happen soon.

Central American All stock is now committed to processors and exporters. Prices are stable at very high levels for pure seed. The majority of processors are now importing seed to increase availability and decrease price. This is creating a wide spread between processors as each takes a different view on the forward business. With regards to elefante seed, we have limited stock to supply of pure ‘Central America’ seed, and have no intention of blending inferior imported seed.

Prices have started firm and will remain so since the quantity will be sold out soon. To worsen the situation the Japanese are trying to acquire any free stock which strengthens it further.

Hulled millet: Ukrainian prices have increased dramatically in the last couple of weeks. It is difficult to price fix contracts out of the region and be certain of supply. USA millet continues to strengthen.

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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