Dipasa Europe market screening 07-10-2022

Dipasa Europe market screening 07-10-2022

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 harvest in Africa just started and is expected in the next weeks/months. Dipasa Europe BV is able to offer African sesame seed from several regions. Dipasa Europe BV is able to offer Somalian and Nigerian harvest on hulled and natural sesame. The first volumes are offered by the farmers, but the prices offered are still on the high side. When larger volumes will be available, the price is expected to decrease to more acceptable levels. Somalia had severe drought in the past months, what effected the crop. However, the sesame plant is only in need of minimal water in the planting time and therefore only minimal part of the crop was damaged. Somalia expects to harvest at least 100.000 mt of sesame seed the coming period.

Next to this Dipasa Europe BV is offering sesame seed from Asia, South-America and Africa. The harvest in South-America is almost completely over for the year 2022. As for South America, only the best batches are used for Europe, because several South-American farmers struggle with the EU-regulations, especially for organic sesame seed, but for conventional sesame seed as well.

At the moment Dipasa Europe BV is proud to suggest Pakistani natural and hulled sesame seed as well. We see that several of our customers see a relationship between India and Pakistan, but the fact is that Pakistan is forbidden to import Indian sesame seed in general. Pakistan has a sufficient sesame crop and we see that a lot of our customers are really happy with this quality and price.

Pumpkin kernels

The (Chinese) market for both Shine skin & GWS is still relatively volatile. Regarding the raw shine skin market, from the perspective of farmer’s there is still room to decline, we will see if speculators will influence the market in the coming months. Normally the Shine Skin – A is cheaper than the GWS – A market, which is the other way around at this very moment.

Regarding the raw GWS market, most Chinese processors think it has bottomed out. We can expect that EU buyers who used to import Shine skin – A will turn to GWS / partially, because of the lower prices, therefore, we expect the pumpkin GWS market will remain firm in the coming months. We advise to cover a partial position for the GWS – A(A), while prices are still very favorable. As stated before, there is still some room for the Shine Skin market to decline, as the Shine Skin is normally cheaper than the GWS – A.

For the organic market, we see that a lot of Chinese suppliers struggle with the EU regulations nowadays. Because of these strict regulations, several lots are set to be declined. We think that the prices are able to rise the coming period, but at this moment speaking the organic prices are firm. We only work with processors that are experienced and therefore are able to meet EU regulation.

Other European pumpkin seed markets, prices of Gleisdorfer pumpkin seeds are also favorable (because of the Chinese pumpkin seed market). Next to this, Dipasa Europe BV visited a Dutch pumpkin farm last week. You can read the full article at our website or LinkedIn page: (https://www.dipasa.nl/dutch-pumpkin-seeds-gleisdorfer-from-dipasa-europe-28-09-2022/).

Flaxseeds

Flaxseed prices are now lower than they have been all year – lower than before the war in Ukraine broke out. Because of the war, many traders and customers have set up safety stocks to secure supply chain and mitigate risks – leading to a very calm summer and low demand for flaxseed.

This low demand is accompanied by a high volume offered by traders that are looking to sell the old crop – needed to finance the harvest of new crop.

Harvests in Canada and Kazakhstan are better than last year. Little to no information about the Russian crop is available right now. New harvest will be available in November, as per our sources. Even though the yields are good, it is hard to predict pricing for the new harvest because of rising energy and fuel costs.

Currently Dipasa enjoys a competitive position for Organic Brown & Yellow Flaxseed, feel free to request pricing and specifications at sales@dipasa.nl.

Sunflower kernels

Even though the war in Ukraine is still in full effect, a considerable amount of the import sunflower seed in the European Union is from Ukraine. In the summertime, rumors were spread Europewide about severe drought and effecting the sunflower crops in Ukraine and Bulgaria. As per our latest information, most of these rumors are rumors indeed. The Bulgarian sunflower crop looks more disappointing compared to last year’s crop.

At this moment speaking, Ukraine has harvested +/- 20% of the total crop. There are also lots of carry-over stocks from the past year. This year the total harvest of Sunflower Kernels looks slightly dented, but because of the carry-over stocks, there is still a lot available. A logical move is that old crop is offered by several suppliers. The chance is big that these goods are from the old carry-over stock and many traders do want to get rid of their old stocks at the moment.

We do think that this could be a good moment to cover your positions, as well till the start of the next summer or partly till Q2 of 2023. Of course, everything is hard to predict because the war in Ukraine could affect the price for sunflower seed.

Hulled millet

A new crop has arrived, yet demand for millet continues at a moderate level. Not much has changed to the demand in Chinese and European market. The Chinese market is low in demand because of several lock down measurements. Prices remain firm for the last month.

Miscellaneous seeds and Vegetable oils

The blue poppy seed market is having a slow start since the new crop. There is a relatively low demand. Prices are still up from last crop. Czech Republic harvest for blue poppy seed is estimated to be damaged for over 50%. Therefore, prices have risen world wide, Turkey have increased their prices since the news of the Czech Republic harvest with around 60%. Consequently, all other origins also increased prices for blue poppy seed.

Chia seeds are still in a down trend since the new crop has come out. The total crop of chia seeds is sufficient. Prices of organic and conventional chia seeds are turning towards prices of 2020 crop, since 2021 crop was damaged for a large part in South America. We can offer South American & African origin + white chia seed.  Black Chia; this source of energy, proteins and minerals is still really popular on the (superfood) market. At this moment Dipasa Europe BV is able to offer Black Chia from Africa as well as South-America.

The new harvest sesame seeds from South America are used to produce conventional sesame and avocado oils at our production facility in Mexico. We are also able to offer organic oils again that complies with European regulation. Prices of sesame and avocado oil have gone up because of inflation and higher energy costs. We are still able to offer a small quantity of organic extra virgin avocado oil with origin Kenya. The crop is slowly starting to be sold out.

*Kindly note that this information is dated 07-10-2022 and that markets are fluctuating on a daily basis.