03.12.2007

Hazelnut Kernels TMO bought nearly 90.000 t of hazelnutkernels by the end of last week. This keeps the prices at a high level and are at 13,50YTL/kg for 11-13 mm ex works Turkey, which compares to 4,94 Euros/kg. Cocoa Prices for cocoa increased in London to GBP972,- due to funds buying. Vegetable Oils On Friday prices of oils got a setback due to liquidation of long-positions and a decrease of mineral oil prices. Prices of mineral oil eased by nearly 10% since 26th November 2007. a) Coming from 97,7US-$/Barrel on Monday, prices came back to 88,29 US-$/Barrel. Better stocks than anticipated and the warm winter caused this correction. b) Better economic figures in the USA and concerns in the EU due to higher inflation rate, strengthened the USD versus Euro. c) Following aspects will determine the direction of vegetable oils in the nearer future: *Soybean prospects in South America became worse due to unfavourable weather conditions during the last couple of weaks. Unusual dry weather in most areas of Argentina and Brazil lead to detoriating conditions. It is expected that the crop in early 2008 will be smaller than anticipated. * Very dry conditions in Argentina make the growth of the crops (Sunflower and Soybeans) more difficult. * Imports of oils to India and China are unexpectedly high. Rumours that China will reduce import taxes leave the prices firm. * Very low stocks in EU-27 countries and very slow imports put some pressure on the prices. * Situation of the palm oil production will play an important role on the direction of oils and oilseeds during the nearer future. Palm Oil Futures in Kuala Lumpur eased due to weaker mineral oil prices. Eyes are turned to import tax ideas of China and export figures of the last month. Coconut Oil and Palmkernel Oil Prices for Coconut and Palmkernel Oil were very active last week. Very low stocks in Rotterdam keep the prices at a very high level. Rapeseed Oil Prices of Rape Oil reached record highs. Though factories work with full capacity in Europe, stocks are unusually low in Europe. Demand for Rapeseed Oil remains high, due to high prices of mineral oil and of sunoil. Very high prices for wheat keep the prices for rapeseed at record highs. Very high rapeseed prices let the prices for rape oil rising. Sun Oil Interest for Sun Oil remains high. Weather reports from Argentina from where some relief was expected in 2008, destroys hopes of higher crop and sunoil from Argentina. Increasing rapeseed and rape oil prices have firm impact on sunoil prices.