|Market Report April 2013|
|Market Report April 2013|
General Oils and Fats Complex
The amount of new crop soybeans from South America is still not high enough to cover the world demand. Unusually low quantities are shipped because of logistical problems in Brazil. This is also reflected in the surprisingly high exports from the United States in recent days. The extreme weather conditions in Argentina with the current flooding in the area of Buenos Aires hinder the soybean crop. It also turns out that even in the northern growing areas of crop losses are recorded due to high temperatures in the last months. The last USDA estimate for soybeans fell slightly more positive than previously expected. Therefore, the markets were slightly weaker in recent days. Also it remains to be seen what impact will have the new cases of bird flu. If larger poultry amounts have to be culled in China, this may cause pricing effects on the soy complex..
The prices of rapeseed oil remained in the last day quite unimpressed by the weaker soybean oil prices, as the old crop stocks continue to decline. The coming harvest in Europe seems to be developing quite well except in England. So far, no major cold injuries have been reported. Analysts expect a harvest of 21.5 million tons.
The export volumes from Ukraine in March indicate a slowing down of production (about 30% less than the previous month). The premiums on soybean oil have risen slightly. It remains to be seen how prices will develop in the summer months before the new harvest.
OLS FROM GUSTAV HEESS PRODUCTION IN THE USA
As reported before, the availability of Oilstock almonds in the U.S. is very limited. The farmers sell very little Oilstock due to the high price of food almonds. Therefore the Oilstock almonds become more and more expensive. We continue to hope that in preparation of the new harvest, the warehouses must be emptied from June and Oilstock almonds will be again available.Attention: Due to the shortage and high prices, some dealers sell in the market mixed and adulterated oil. Often the term USP or BP is used. These are old British or U.S. specifications without sterol tests. These old specifications allow for example Sunflower oil to be sold as almond oil. Please pay attention to purchase only goods according to European Pharmacopoe and ask the seller additionally for a confirmation that you purchase pure almond oil.
The demand for walnut oil has increased significantly in recent months. As a result, the stocks have declined significantly on the continent. We assume that the supply from the USA will just be enough to meet the increased demand. Should you still have a demand for Q2 and Q3 are, we strongly recommend to cover it prompt.
After about two and a half years of planning and construction, two weeks ago we successfully brought into operation our new specialty refinery in our factory in Denair, California. Unique in its design, we implemented the world's most advanced technology available for oil processing. Thus, the Heess Group will expand its leadership in nut oils and other specialty oils significantly. Sustainable control starting from the field and including each production step up to the finished oil will give our customers a distinct advantage in terms of reliable quality and traceability.