Wildfires in Southern Europe, that are raging in Portugal, Spain, France, and Croatia, are burning houses and threatening livelihoods. Most of the continent is hit by a heatwave that pushes temperatures into the mid-40 degree mark in numerous locations. For some this is the second heatwave in a few months. Regional authorities in the Salamanca province, in Spain, said more than 4,000 hectares of land were burned.
Dutch farmers continue to protest in demand for more time and help to adopt emission-reducing technologies, as threatens to close all production had been made. Farmers have taken their frustration to the streets by blockading highways, storming the provincial assembly and driving a hearse of tractors into the capital. The protests have been taking place for nearly three years, but the protests have rapidly increased with new legislations. Farmers in Italy, Spain along with Poland have joined Dutch farmers in protesting.
Moreover, gas supplies are still an ongoing concern in the market. Many unknowns concern Germans that could affect gas prices, making them unaffordable for industrial users. Some H1 2022 contracts are being adjusted upward to reflect energy, and both parts are trying to avoid this for the long term by opting to index energy and commodity prices. Suppliers who are not hedged are unwilling to extend contracts beyond the first quarter without a pricing strategy to cover energy costs.
We can definitely state that there is a shortage of sugars and other sweeteners. In Poland, among other commodities, most stores are running out. The chain has even begun to impose local limits on sugar purchases per customer. At the beginning, social media platforms started posting about the lack of sugar in discount stores. Voices of excitement were heard not only from ordinary consumers, but also from beekeepers who, due to the lack of food for bees, also feed them with sugar at regular intervals.
Some say that manufacturers have begun buying up goods in bulk at retail. The question is how long the shortage problems will last. In several mass media publications we hear about ideas to restrict food, as the discussion about government control of food production is compared to control of people. And although people are slowly getting used to higher prices and adapting to limited availability of some products, this still disregards everyone’s need to eat.
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Potato Protein
The market for potato proteins is clearly dominated by the high demand for the new potato crop, because of the price. Small manufacturers are said to sell new crop at lower prices, but we still can expect a wide price range due to the old crop still being present in the market. New crop prices will probably catch up in September or October.
Vital Wheat Gluten
Still many requests for Vital Wheat Gluten come from companies producing regional foods and specialties. And despite a slow period in July and August for feed price products, unpredictability concerns the increasing energy prices, that will definitely have an effect.
Hydrolyzed Wheat Gluten
After a long decline at the end of last week, wheat quotations on world stock exchanges have fallen back to pre-war levels. Allegedly, good crop conditions are recognized in the U.S. and Russia. The wheat market has been boasted by the rise in oil prices, together with soybean and maize rates. But some cases prove that Ukrainian farmers are withholding sales and watching negotiations regarding the release of Black Sea ports. Therefore, we can see increased prices for Hydrolyzed Wheat Gluten feed grade products.
Dextrose
In the case of Dextrose, there is a lot going on in the market. Participants are noticing increased demand for the commodity this week, along with numerous requests. Majority is coming from the peripheral countries, but these regions having cheaper energy available, provide relatively cheaper prices.
Many suppliers believe that food grade Dextrose Monohydrate will soon be very hard to find on the market and price increases are imminent.
Corn Gluten Meal
The stable market for Corn Gluten Meal, creates the assumption that due to the decreased availability of Fish Meal on the market creates a popular alternative choice by some aquafeed producers.
Soy flour NON – GMO
In the Soy area development prognose in EU27, we could see the visible hike in forecast crop of 1.09 millions ha for 2022, which is a 12% increase compared to the previous year.
Sunflower Protein Concentrate
We could observe a slight increase in the price of Sunflower Protein Concentrate compared to the previous week, as it is a cheap and effective alternative for plant-based protein.
Starches
Rising transportation costs and supply chain reliability remain the greatest challenges for the European starch industry. It is difficult to arrange same-day transportation from Eastern Europe, and this does not make pricing any easier. Strong demand for starch comes from graphic paper producers, and there are also many requests for starch used in the fermentation process and in the production of bioplastics.
The demand for food grade products is soaring, as brand owners tend to substitute starch for more expensive ingredients. Numerous instances prove that customers are switching from corn to wheat starch, since it is much more available. In the case of potato products, the price is more reasonable than other plant-based starches.
These commodities were also one of the main topics at a snack food convention, taking place in Hamburg. SNACKEX 2022 hosted numerous producers from all over the world.
