Market report June 2011
FX Monthly movement
US$/£1.63 unchanged
US$/ 1.46 up from 1.43
£/ 1.11 down from 1.4
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Market report June 2011 |
FX Monthly movement US$/£1.63 unchanged US$/ 1.46 up from 1.43 £/ 1.11 down from 1.4 |
Pumpkinseed kernels: Nearby the markets remain weak and demand is not recovering, but there is a potential storm on the horizon! Shine skin plantings are down between 15 and 35% depending on the region and GWS around 20%. Alternative crops that are more easily marketable are competing for acreage and the poor demand this season has encouraged farmers to change their traditional growing patterns. It seems very likely prices will start heading up for the new crop positions. Sunflower seed kernels: Eastern Europe is still the most competitive origin and prices have eased back for both new crop and old. The USA remains firm supported by internal demand, oil crushing and bird food markets. We do not see it becoming competitive next year. China is also severely cutting back planting areas, particularly of bakery grades, which are 50% less than 2010. A weather problem in Eastern Europe this season could see a spectacular price increase. Linseed: All eyes are on the UK and Northern European crop, which is suffering severely from drought. Certainly in Eastern England, it looks like the situation is beyond recovery, with plants dwarfed and in flower. Yields will be totally dependent on rain from now on but overall the harvest will be below expectations. Since these areas are the only reliable GM free growing regions, it is a cause for concern too! Sesame seed: India A little early rain in Gujarat causes some concern locally since it may affect the supply of summer crop, but over all this is not something to be too concerned about we believe. The estimate we have for this crop is 48000mt. Rajasthan has a stock still of 50000mt and UP/MP has around 35000mt. Local buyers are active firming the price a little as the look to cover and prepare for the various Korean tenders, both past and expected in June. The market is splitting into two tiers with a spread of about $ 80-100/mt. The premium processors providing good, accredited sesame that is free of problems. The other processors should not be relied on for supply. Central American The Venezuelan harvest is now in and is competitively priced against other origins in the region, although not able to compete on quality terms with Guatemala, Nicaragua etc. The country is plagued by shipping issues however and lead times are excessive. We are having to allow 10 weeks' notice for shipments! Mexico continues to offer a range of prices depending on the blend of seeds used. A combination of Mexican/Guatemalan then Indian and Venezuelan is used. Hulled millet: New crop millet will stay at current levels, due to the short supply situation, planting conditions in the USA which are not too favourable at present. Also demand remains high since it is the cheapest bakery seed. We expect this situation to be exacerbated by the bird food industry in the autumn where it will be used in increasing quantity in seed mixes replacing the expensive sunflower. Poppy seed: Well this is one seed which perhaps does not look quite as firm as the others. Spain is due to harvest in a few days and the crop should be OK. The morphine levels will be better this year, due to drier weather. Other areas are desperate to sell Australia is offering cheap seed, Czech Republic is looking for bids. The warning though is that it cant go much cheaper, and when poppy turns it does it with style!++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ We hope this brief update assists and look forward to hearing from you in due course.
Telephone 0044 (0)1372 230020 |