Dipasa Europe market screening 06-07-2022

Dipasa Europe market screening 06-07-2022

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

After a visit of Dipasa Europe to Brazil we will start this market report with some information about this country and sesame. There is a growing area in Brazil and also farmers that see potential in sesame. As per 2020 we have established Dipasa Brazil near Sao Paolo and therefore we are able to offer competitive prices.

A big part of the soil in Brazil has always been poor for agriculture purposes, but the direct planting method made it possible to enrich the soil (profile building) and also have up to 2 crops per year. Even though yield per crop may be a bit lower, multiple crops makes this area interesting to farmers. We had constructive conversations with our partners in Brazil and multiple farmers about the requirements for Europe.

Hulled sesame seed

Hulled sesame seed in India is very hard to come by (especially within European guidelines). The new crop will arrive in 4 months; however, crop is expected to be lower as farmers prefer to sow other products than sesame. The market in Africa is also emptying up, pushing up prices. Until the new crop we foresee prices to remain firm.

Natural sesame seed

The new crop for natural sesame seed in Paraguay and Brazil is known and processed. There is only a very small part suitable for organic sesame seed suitable for the European market.

India is using most of its natural sesame seed to hull. Therefore, almost no natural sesame seeds are available in India. In Africa there are still parties offering natural sesame seeds, but most of the time the color is not acceptable for Europe. In Nigeria and Uganda there are still possibilities but the quality is (most of the time) not in accordance to European standards. Somalia has a small crop in September/October which we can offer in due time, this crop will be used as natural and to be hulled. Recapitulating it is interesting to close quantities in South America for natural sesame seeds now.

Pumpkin kernels

As for the pumpkin seeds from China, the market is stable at the moment. Shine Skin pumpkin seeds were in a down trend the last few months, mostly because of the export possibilities and the total crop for shine skin was a sufficient one during 2021. Speculators that have kept a big part of the shine skin pumpkin seed stock are selling now. For July and August these speculators will have a big impact on the price of shine skin. It is expected that a chunk of the crop shine skin in 2021 will be processed into the 2022 crop.

As for the GWS pumpkin seeds prices remain stable, because of the Euro to Dollar however, prices have increased in Europe. The new crop for GWS is expected to be better compared to 2021, around 25,000mts is the expected crop size for GWS pumpkin seeds during 2022.

The market for European pumpkin seeds is in an up trend at the moment. Conventional pumpkin seeds EU are still available but face low stock in origin (almost all is sold out). The organic market pumpkin seeds with European label is increasing, as volumes and stocks are also low. We foresee a bigger demand in European pumpkin seeds for the coming years, as there is a growing trend in European seeds and kernels.

Flaxseeds

After having achieved the worst global flaxseed crop in 2021/2022 of the past three years (down 8% in relation to the previous crop at a total of 3.03 million MT and mostly Kazakhstan’s and Canadas crop declined), Russia has achieved a record result of production at 950.000 MT – but due to the sanctions still in place, export of this product continues on a much lower volume.

European crop has on the other hand slightly productions increased. In line with these developments, flaxseed prices are still at record high. However, first price corrections have been noted due to a lack of demand. Spot prices are fluctuating on a daily basis.

Sunflower kernels

Sunflowers and Ukraine. Ukraine has been one of the biggest supplier of sunflower kernels of the past decades. It is the national flower of the country and it is slowly growing into an international symbol of solidarity and resistance against the Russian invasion.

After a period of constant price increases because of the turbulence in Ukraine and Russia the market is slowly coming down. Prices for sunflower seeds bakery grade from Europe are in a slow down trend, prices for organic sunflower seeds remain firm. We expect that the new crop will remain firm and the down trend will slow down. Because of the war in Ukraine there are farmers that did not have time to plant the seedlings, nevertheless it is hard to estimate the impact on the 2022 crop at this moment.

Another cause of the down trend are the stocks in Ukraine; they need the storage space for the upcoming wheat harvest. Increasing prompt availabilities from traders are decreasing the prices at the moment. The area that has been sown is estimated to be the lowest average since almost 10 years. In combination with possible environmental factors and the war (think of mines and other ‘war’ circumstances), the new harvests are unpredictable.

Hulled millet

A big part of the crop Hulled millet is coming from the Ukraine. Despite the war, farmers in Ukraine were able to sow almost 50000 ha of millet for the next crop. This is a decrease of almost 35% compared to the last year(s). This means that future yields are set to decline and it is unclear at present which volumes will be available.

The situation will remain unstable and uncertain before any conclusion can be drawn in regards to the war between Ukraine and Russia. The market price for (organic) hulled millet has risen and because of the lower expected future yield(s), the prices won’t probably come down as much as the prices did some time ago. The EU highly depends on imports from Ukraine, so alternatives from China or the USA are even more expensive than millet out of Ukraine.

In general, the situation is uncertain. The price is currently stabilizing, and traders are doing their best to sell their stocks. End August / begin September, the new crop is expected. But as stated before, the yield can’t be as high as the last year(s). How the market will react is logically uncertain; but expected is that the prices won’t revise as would happen under ‘normal’ circumstances when a harvest is just around the corner.

Miscellaneous seeds and Vegetable oils

The blue poppy seed market is under pressure because of the war in Ukraine. There is still a sufficient stock available for blue poppy seeds <20ppm morphine level. Because there is still a lot of confusion about morphine levels in blue poppy seeds, most customers demand a level of morphine below 10. The regulation for blue poppy seeds in end products however is way below the morphine levels asked.

Farmers in Czech Republic have sown less blue poppy than last year, a rough estimation is that 4/5^th of the total harvest in 2021 is to be expected this year. Prices today remain firm but are expected to increase in the coming months until the new crop arrives beginning of August.

The new harvest of chia is coming out soon, until now the harvest looks good and will probably be a better crop than in 2021 (where a sufficient part of the chia harvest was affected by draught). Dipasa Europe has visited Brazilian farms and the quality of the chia seeds here are looking good.

We are starting to offer organic oils again from the new harvest in South America. After a long period of product scarcity. Because of the strict regulations in Europe, it is hard to produce oils according to EU rules. As per today we can offer you again, organic extra virgin avocado oil, organic macadamia oil, organic toasted sesame oil, organic extra virgin sesame oil and organic refined sesame oil.

*Kindly note that this information is dated 06-07-2022 and that markets are fluctuating on a daily basis.