The information we get from the cultivation areas in the Mediterranean are not very promising. While the harvest yields in Turkey seem to reach normal volume, the expected quantities in most of the Mediterranean regions are significantly below normal levels.
- Spain – 50%
- Italy – 35-40%
- Morocco – 20%
- Portugal – 30%
- Turkey as in the previous year
In view of these forecasts prices have risen sharply in recent weeks. Without knowledge of the expected harvest quantities, the kibblers were not willing to make offers to the producers of Locust bean gum until a few days ago. In turn, this led to the fact that producers were unable to offer prices and quantities of LBG. As a result, prices reached a high level which we have not seen for long time. Due to this situation, we do not expect prices to fall. Only after the harvest has been completed and total crop size will be known the kibblers will fix prices for seed and LBG producers will be able to offer quantities and prices.
The purchasing power of Dupont as the largest buyer of seeds will also have an important impact on prices. We recommend medium to long-term coverage, providing that the necessary quantities are available and can be offered at all.
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