Keep up to date with market movements which we publish monthly in our pricing supplement.
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Mel’s Market Report April 2023
Dried Vine Fruits
We received early advice at the beginning of April that there had been heavy frosts and potential frost damage in a number of the Turkish growing regions. Further reports have now been received with regard to the extent of that damage!
In some areas there is very little damage, but in other areas there are reports of 90% damages. Some of the vines had reached the “bud burst” stage earlier than others, and where there is earlier development of the flower stems is where the damage has been most impactful.
At this stage it is estimated that 20 -25% of the crop could be impacted by the two nights of frost, and this will have a significant impact on the 2023 crop.
The news on the frost will certainly trouble the market and although not a catastrophe, it will probably be enough to justify a price increase, certainly in the short term!
With this recent news we are happy to report we have a very competitive, covered position on sultanas that will see us through until August, by at which point the market should have settled back down!
Grain prices including oats have been easing in the last few weeks due to more favourable supply in the UK.
Spot prices have been falling although there are still high-priced contracts around which will need exhausting first before prices start to ease anticipated beneficial reflection will be May time. Energy prices have in recent weeks stabilised but are still high in relation to prices before the Ukraine war (2-3 times higher).
Drought has impacted corn harvests significantly with shrinking yields and production across EU.
New crop comes with a significantly lower protein level in the EU. The War between Ukraine and Russia continues to have a significant impact on the energy prices, resulting in extreme daily volatility in gas prices.
Freight prices are sky rocketing due to decreasing river water levels in Europe and competition with other cargo like coal.
Butter prices are still easing so cover is short as we track the market down. We can also anticipate welcomed cheddar decreases come May which will be well received as we head into the busier summer season.
Rapeseed prices have been under pressure from expectations of increased EU and Australian production and higher EU imports. Demand from both the biodiesel and food industry have also been relatively subdued as many buyers have been reluctant to contract too far forward given the extreme volatility over the past 12 months. However, rapeseed prices continue to fall to the extent that some farmers are now reluctant to sell off at current levels which could therefore support pricing over the coming months.