`Tough Time for Spain’s Olive Oil Stock Market

Europe

Tough Time for Spain’s Olive Oil Stock Market

Aug. 17, 2011
Charlie Higgins

Recent News

Given the rough ride that has been Spain’s olive oil indus­try in recent years, the sector’s dis­mal July-August fig­ures for olive oil trades should come as no shock.

Between July 12 and August 12, sales trans­ac­tions between pro­duc­ers and traders fell to 24,484 tons, rep­re­sent­ing a 53 per­cent drop from the pre­vi­ous month.

Prices con­tin­ued to drop as well. Accord­ing to EFEAGRO, extra vir­gin olive oil prices fell by 2.27 per­cent (1.9 /kg), while the price of oils labeled vir­gin” and lam­pante” dropped 1.53 per­cent (1.74/kg) and 0.73 per­cent (1.63/kg) respec­tively.

When com­pared to the same period in 2010, depre­ci­a­tion was even greater, with lam­pante oils down 3.66 per­cent and extra vir­gin oils down 4.65 per­cent.

Advertisement

Futures pur­chased through the Mer­cado de Futuros del Aceite de Oliva (MFAO), Spain’s offi­cial olive oil stock mar­ket, were also lower than expected.

Just 200 MFAO con­tracts were signed this August 4 – 10 with prices between 1,630 and 1,760 per ton. Con­tracts were dis­trib­uted among five of the seven matu­ri­ties open to nego­ti­a­tion: 25 con­tracts for Novem­ber 2011, 50 for Jan­u­ary 2012, 50 for March 2012, 50 for May 2012 and 25 for Sep­tem­ber 2012.

Investors and pro­duc­ers have seri­ous doubts about the upcom­ing cam­paign for 2011 – 2012, which begins in Octo­ber. On the upside, for­eign exports have shown some promise. Between Octo­ber 2010 and April 2011, exports grew con­sid­er­ably in coun­tries like Brazil (21 per­cent), Canada (12 per­cent), United States (6 per­cent) and Aus­tralia (+1 per­cent), though Japan saw a drop in exports (-10 per­cent).



Related News