FX   Monthly movement

US$/£1.60 down from 1.54

US$/€ 1.335 up from 1.28  

£/€ 1.2 up from 1.17

Over 2010 the £ has performed overall better against the € than the US$, ending the year roughly 4% stronger against the € and 4% weaker against the US$. This has had a significant impact on sourcing of materials which are available in both currency dominated zones. This can be seen most dramatically in the sunflower market, but also has an impact on supplies of millet and linseed.

Chinese New Year starts at the beginning of February and lasts for two weeks. Shipments will therefore more or less stop until end February/early March 2011.

Pumpkinseed kernels: Demand has remained poor, helping to keep prices lower than expected as consumers still seem reluctant to increase their inclusion rate at this level, having formulated it out in 2009/10. There is a swing towards supply of ‘ready to use’ material from China too at present as a few facilities seem to be controlling quality adequately now. The pesticide issues continue to be present with this crop.

Sunflower seed kernels:  The anticipated Argentine crop is suffering due to drought caused by El Nina, so supplies are tight. Harvest is expected in February and the actual yield will not be known until then. Hopefully there will still be some product available, but not enough to bring prices down. China has drifted lower as internal demand has been sluggish and there are good volumes available. The USA is sold out and Bulgaria continues to struggle with quality, although prices have stabilised.

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.

Sesame seed: Indian market remains steady with some demand, and a Korean tender for 8000mt this week. The rupee v US$ has weakened prices a little but the market fundamentals remain steady in the origin. Africa is harvested and China has started buying here.

Central American The crop is now in the hands of processors and some intermediaries. The quantity is disappointing but the quality is good. Most processors are importing cheaper seed this season which will lead to variable quality, as has been seen before. The Elefante brand will be produced from local seed, which should maintain the quality of previous years, although it will be more expensive than blended 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.

Venezuela will harvest in March, and Paraguay April, the latter only supplies natural seed. 

Hulled millet:  Ukrainian prices have steadied, but getting shipment is a problem. USA millet is currently more favourably priced.

opiate level is strictly monitored, and this is potentially creating a two tier market. Demand for poppy is expected to pick up any moment for the seasonal use at Easter, and if the past is to be repeated the Czech farmers will grasp the opportunity to increase prices again.

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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