The Price Forecast Category

Scallop Prices Have Dived due to Large Catches

Spend Matters welcomes this guest post from Jonathan Stokes, analyst at Mintec.

Scallop prices peak seasonally at the start of the year due to declining stocks in line with the end of the fishing season, with prices rising 13% from December to January. U.S. sea scallop prices have, however, fallen 34% since March, due to not only the number of scallops caught by fishing vessels but also the size of the individual scallops.

Slow Running, Cheaper Fueling: London 2017 and Agricultural Commodities

marathon

Spend Matters welcomes this guest post from Nick Peksa, a director at Mintec. 

It’s 8 a.m. and I am waiting for a docklands light railway train, when it arrives a few moments later, with slight apprehension I step on board. The DLR train rapidly fills up with a Lycra clad army, the air is heavy with the scent of wintergreen, menthol and eucalyptus, and there is palpable excitement and nervous tension in the air, as people chatter away. Yes, that’s right, Regain, a fantastic charity that supports tetraplegics in sport, persuaded me to run the London Marathon for them this year.

US Soybean Prices Crash to 5-Month Low

GMO

Spend Matters welcomes this guest post from Jonathan Stokes, an analyst at Mintec.

In recent months, soybean prices have crashed to a five-month low. Previously, prices were edging upward and the sales outlook for American producers had been positive. So why was there this quick reversal in fortune?

Aircraft Prices Taxiing Toward Take Off

Spend Matters welcomes this guest post from Brandon Ruschak, senior economist at IHS Pricing and Purchasing Service.

Aircraft prices are expected to accelerate in the second half of 2017, a turnaround from the weak price growth that has occurred for several years. Low price growth emerged in 2013 due to the retrenchment of key input costs for aircraft manufacturing, but this trend has recently shifted. Rising input cost prices will contribute to the pricing turnaround to occur later in the year. Aluminum prices will move higher over the next two years, putting upward pressure on aircraft prices. Additionally, tightening labor markets are forcing up wages, adding more upward price pressure.

Could This be the End of the High Cotton Prices?

Spend Matters welcomes this guest post from Verity Michie, Market Analyst at Mintec.

Last year in June, we asked whether the cotton price recovery continue? The answer was yes, it did, all throughout 2016 and into 2017. But now the real question we need to ask ourselves is how much longer will the price continue to rise? To answer that question, we must understand why prices rose to almost three-year highs in the first place.

US Coal Prices Up on Increased Demand

Spend Matters welcomes this guest post from Rajiv Joarder, knowledge team leader at Mintec.

Coal prices have been on a steady downward trend since late 2012. But lately, the price of coal in the U.S. has risen by 36% since the beginning of October 2016 and is expected to go up further. So has Donald Trump delivered on his campaign promise to revive the coal industry?

US Cheese Price Bubble Could Be Set To Burst

cheddar

Spend Matters welcomes this guest post from Michael Liberty, market analyst at Mintec.

We last spoke about cheese prices in December, when the USDA purchased stocks of excess cheddar in November to help boost domestic prices, which resulted in a two-year peak in November. Fast-forward three months, and it’s deja vu; however, this time, the global markets are making their mark.

Fake (Commodities) News: Investigate, Investigate, Investigate

Spend Matters welcomes this guest post from Nick Peksa, market analyst at Mintec.

In the press we have heard a lot about fake news. This is nothing new; this has been around in the form of market rumors for many years. As we all know by now, the commodity and raw materials market can be very sensitive to speculation — one bad report from an unknown source can cause major price upheavals in a market. In order to verify or discount rumors, they need to be approached in a logical manner, i.e., ask or research all of the questions that might influence a market.

Spreads: Functional or Fatty?

Spend Matters welcomes this guest post from Jara Zicha and Nick Peksa, market analysts at Mintec.

Breakfast has been touted for many years as the most important meal of the day; however, times are changing in this fast moving world of marketing and grab-and-go. Today’s buzzwords are “fast and functional,” so what is it that can possibly tick these boxes? Chocolate on bread! A generic chocolate spread contains five key ingredients; sugar, palm oil, hazelnuts, semi-skimmed milk powder (SMP) and cocoa powder. The good news is that the price of spread is dropping. This seems slightly counterintuitive when you consider there have been global price increases in both sugar and palm oil over the last two years. But in reality, sugar and fat are bulking agents and are the cheapest constituents of the product, so the more that can be crammed into a jar, the more money the manufacturer can make.

Spring Time Sees Ammonia Prices Grow

Spend Matters welcomes this guest post from Verity Michie, market analyst at Mintec.

U.S. ammonia prices have been on a downward trend since the beginning of 2015, reaching a seven-year low in November 2016. So why have ammonia prices suddenly started rising? In order to answer this question, we will need to look at the reasons behind the two-year-long decline.

Cocoa Market Braces for Largest Surplus in 6 Years

Spend Matters welcomes this guest post form Avneet K Deol, market analyst at Mintec.

In the run up to Easter last year, a survey conducted by the National Retail Federation estimated that Americans spend around $2.4 billion on candy, and this year is looking to be no different, with 87% of parents preparing an Easter basket for their children. So in terms of impact for chocolate sales (mainly eggs), Easter is more important than both Halloween and Valentine’s Day. Given the time of year and news that cocoa bean prices have plummeted in recent months, we decided to take look at the reasons for this.

America Needs a Bigger Closet

warehouse

Spend Matters welcomes this guest post by H. Cole Hassay, economist at IHS Markit.

Americans need more space to store their goods, according to warehouse construction data. Warehouse construction rose in 2016 by 8%, coming off three years of double-digit growth as consumers continue to demand more storage space. Rising demand, along with historically low interest rates, prompted this construction explosion. Though the Federal Reserve has signaled interest rates will be rising in the near term, warehouse construction should remain positive, though less dramatic, as demand persists.