Commodities watch

14 December, 2007
Page 12 
]Since May, prices for Argentine and Mexican honey have continued to decline, despite a weak US Dollar, according to Fuerst Day Lawson's (FDL) Market Report: 30 October 2007 on honey.
The specialist ingredients supplier addressed the question of how long prices for honey will continue this trend. Demand from Europe and the USA is quiet at this time of year with "the holiday season in full swing" and with food manufacturers already having secured their stock. "It is now clear that the recent decline in prices from Argentina and Central America should be interpreted as sellers reducing their prices in the face of slack demand."According to FDL's report, some honey-makers are holding on to supplies, hoping for a higher market, but: "They will have to wait until later in the summer to see if the increased demand that is then likely to come from Europe and the USA will translate into higher prices." FDL predicts that prices should not change too much over the coming weeks.Although there was still no official notification from the EU authorities of a resumption of shipments of Brazilian honey to Europe, the report predicted that shipments may resume late in 2007. But this would be too late to have any influence on Argentine honey prices this season. Honey from China is below the previous estimated levels: "Despite a strong Renminbi against the US Dollar, we continue to believe that Chinese honey, despite the necessary extra analysis costs, is fully competitive against Argentine honey and we see no reason why Chinese prices should decline in the short- or medium-term."



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