Dipasa Europe market screening 01-02-2022

Dipasa Europe market screening 01-02-2022

Dipasa Europe’s market review with information about some major seed, kernel & vegetable oil markets. Do not hesitate to contact us via sales@dipasa.nl for any additional questions or quotations.

Sesame seeds

The current picture for sesame seed is a quite stable global market. India had a disappointing crop with almost no carryover from the 2020 crop. African sesame origins are facing a crop reduction, logistical problems and political instability in some countries, affecting availability of sesame seed.

Next harvest comes from South America, starting within the next couple of weeks. Drought and extremely high temperatures may impact the harvest in various regions, resulting in a potential crop reduction. This year we expect significantly higher prices from South America which potentially have impact on the global sesame seed market.

Pumpkin kernels

The market remains stable and as for Chinese pumpkin, due to Chinese New Year, all factories are currently closed. Over all the demand has been low, due to the insecure economic situation worldwide, not only for pumpkin but for all products.

SS; the shine skin raw materials market is stable. Prices have been coming down a bit before Chinese New Year, there have been some offers on the market from suppliers who are eager to cash flow to get some orders and lower their position before the Chinese New Year.

GWS; there have been some lower offers in the market to keep the business running, however the raw material prices remain firm. After Chinese New Year the worldwide demand is expected to increase. The only factor that could draw prices lower are the freight costs. As there will be a low production and therefore availability of products after Chinese New Year, the logistical process can reboot hopefully.

Flaxseeds

The flaxseed market in Europe opened in 2022 with stable prices for the conventional market. The organic market for flaxseeds is running short. Because of a lack in product, prices are increasing. The market for yellow linseed is still worrying. Yellow linseed with European quality standards is hard to cover at the moment.

Because of the instability in Ukraine, it is not to be expected prices will come down any time soon. Delays are mainly caused by the tensions between Russia and Ukraine. Kazakhstan, a very important processing country, is facing also instability and therefore supply chain issues.

Sunflower kernels

Several companies delay covering their needs because of the high levels, the trend is to purchase spot at the moment. Because of this speculation the price was affected from December 2021 to January 2022.

Farmers, suppliers and speculators are careful in concluding long term contracts. Because of inflation and transport uncertainties financing such long contracts faces great risks.

The market for oilseeds stays at high levels (the sunflower kernel market is closely related to the rapeseed oil market per example). We expect the sunflower seed market to maintain in an upward trend during 2022 until the new crop arrives. Weather problems in South America and drought are the main cause of this. The next big crop (apart from the crop sunflower seeds in Ukraine) is in September 2022, therefore it looks like the only way is higher price levels for sunflower seeds at the moment.

Hulled millet

In the overall market there is limited millet available. Some processors in origin have stopped to offer at the moment and hope to offer again mid/end February. It is difficult to find sufficient volumes to cover contracts for long periods for the time being.

At this moment there is a quota for hulled millet from Ukraine. This quota is available for another +/-5.2million kilograms, the total quota was 7.8million kilograms. When this volume has been reached, the quota will stop and it is uncertain if there will be a continuation of a new quota.

Miscellaneous seeds and Vegetable oils

The demand of hulled hemp seeds is increasing year after year. The prices of the crop in China and South America (especially for organic hulled hemp seeds) are still at levels the crop came out. We have stock of organic hulled hemp seeds AAA grade. Kindly contact our sales department for the possibilities.

The market for chia seeds is still firm after a significant price increase in 2021. The majority of the crop in South America was damaged, there are still options in South America and India but at high levels. The expectations are that chia seed prices remain high with a slow up trend until the new crop arrives.

Prices for sesame oil are slightly increasing as there is a limited supply in South America and Africa at this moment.

We have organic macadamia oil on stock from 2021 harvest, next to this we can still book additional volumes.

*Kindly note that this information is dated 01-02-2022 and that markets are fluctuating on a daily basis.