Record Inventories In Spain
The statistical pages from the Agencia para el Aceite de Oliva reports that olive oil inventories in Spain, as of the end of August, stood at a record 528,500 metric tons - approximately 40 thousand higher than they were in the same month of the record crop year 2004, the first year for which this figure is kept. Without knowing the stocks on hand in October 2003, it is worth noting that the 2007-08 crop saw about about 180,000 less olive oil produced in this country than four years prior. In November of 2004, season's spot prices bottomed out at 2.30€, 2.17€ and 2.13€ for the three grades quoted. This is four or five cents lower than current for lampante and virgin, and approximately where we are now in the case of EVOO. On the other hand, that was heading into a crop that produced less than one million tons, as opposed to the 1.2 million expected this year, not to mention in an environment of rapidly increasing consumption worldwide - which is certainly not the circumstance at present.
Seeing as virgin grade seems to be currently being dumped on the market at low prices, whilst exta virgin sales continue to remain stalled, we imagine that there might not be much upside for this latter category.
*Grapic courtesy AAO. Click on it to make it bigger.
Categories:
Producer Prices
4 comments:
Spain keep creating false news to stop any chance of inceasing price of the olive oil in the world...we don't belevie more Spain's numbers!!
That may or may not be true. But no other big producing country even provides numbers.
All the elements seems to say the price will fall.
But the EVOO price can still be lower than today's quotation?
Olive oil, Olivolja is a fundamental product in spanish culture!
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