Pumpkin seed kernels: Panic sales lead to short-term price declines
November 4, 2016 at 11:20 AM ,
Der AUDITOR
Processors are getting cold feet
A processor of pumpkin seed kernels from Inner Mongolia got cold feet during the last week, and cleared his warehouse at reduced prices. After all, prices for pumpkin seed kernels have known only one direction for weeks, and that is down. Most exporters have only a limited supply of pumpkin seed kernels since buyers are very hesitant and are buying only small quantities, because they are figuring on sinking prices. Chinese traders now hope that prices will stabilise in November. The basis of these hopes are raw materials speculators, who at the currently very low prices could at least stop the price erosion.
Panic with shine skin
Suppliers have been driven to downright panic due to the large production, and missing demand of Chinese roasting plants. The price spiral has been turning relentlessly downward since mid-September. In order to be able to sell their merchandise, processors have cut down prices and bought very little raw pumpkin seed kernels for fear of even more price declines. Many processing plants had even suspended production intermediately. The situation has now stabilised at a low level, and production has been resumed almost fully. At present, there is a supply of 300,000 mt available.
Pesticide residues with GWS
The low price level of pumpkin seed kernels, shine skin, has also influenced prices for GWS produce, which means that they are presently traded at a similar level. There is no demand in China for kernels GWS. In addition to that, pesticide residues are causing exporters considerable headaches. There are 30,000 mt presently available.
Continued low prices
Due to these figures and the weak demand, even Chinese exporters have lost hope of prices increasing markedly any time soon. One large unknown factor are the raw pumpkin seed kernel speculators, who are indeed capable of putting the market into motion, but so far, that is only wishful thinking on the part of farmers and producers. In the end, they will have to wait until April to see if farmers will continue to plant pumpkin seeds, or if they will switch to other, more competitive crops because of the low price and demand situation. Thus, there is at present no real reason for the end of low prices of pumpkin seed kernels.
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pumpkin seed kernels, China |
||
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type |
Grade |
USD/mt |
|
GWS |
A |
2,100 |
|
GWS |
AA |
2,400 |
|
shine skin |
A |
2,000 |
|
shine skin |
AA |
2,300 |
|
CFR Hamburg |
||
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