Crude palm oil is checked for quality control in a
processing plant in Langkat, in Indonesia's north Sumatra
province. Photo from Reuters.
Volatility in agri-commodity prices looks likely to
continue into 2013, particularly for grain and oilseed markets,
a new report from Rabobank shows.
A supply squeeze in those markets in the first six months was
expected to push prices higher before an expected production
rebound led to a weakening in the second half of the year.
Soymeal was likely to show the largest price decline by the
end of the year, while the bank's analysts expected palm oil
to be the strongest performer.
The outlook for soft commodity markets - sugar, cocoa and
cotton - was neutral to slightly bearish next year.
Weak global economic growth and continued macro uncertainty
might cause a slight drag of demand for agricultural
commodities. However, a low United States dollar would
provide support for prices, Luke Chandler, who heads
Rabobank's agri-commodity markets research department, said.
The ASB New Zealand commodity price index fell 1% in New
Zealand dollar terms over the week to November 23, as the
1.4% lift in the NZD outpaced the 0.4% increase in USD
Silver Fern Farms latest market update showed lamb markets
remained steady, although most interest was for short-term
rather than longer-term programmes.
Importers were looking forward to the start of the festive
season after sluggish venison sales for premium value cuts in
Economic conditions in Europe were continuing to weigh
heavily in key markets, with poor demand for higher value
middle cuts, especially frozen loins.
Chilled venison sales had been reported as satisfactory.
Asian beef markets remain firm, with beef kills still
relatively slow against solid demand for chilled and frozen
China continued to increase its beef buying for a range of
secondary beef cuts and that was continuing to underpin price
growth in traditional markets of Korea, Japan and Taiwan.
The European market remained a concern, with sluggish demand
and heavy inventories of chilled beef in the market.