Welcome to the October 2023 edition of the NBF Market Roundup, where we provide you with an overview of the current trends in commodity markets. As a trusted source of organic food ingredients and products, Nature Bio Foods aims to equip you with valuable information that can help you make informed decisions in your purchasing endeavours.
ORGANIC RICE
FAO Rice Index for September remained at 141.7 points which is 0.5% lower than August month. Please see the chart beside (Source-FAO)
Organic Aromatic Rice:
Organic Basmati Rice prices stabilized a bit after a long rally post India’s exports ban. Similarly, Pakistan super rice prices have also followed the trend. But Thai Fragrant Rice prices dropped by almost one % due to depreciation of Thai Baht Vs US dollar. All the fragrant rice harvest for these Asian countries are expected to start by November which shall add supplies to global balance. In Thailand, crop harvest has been delayed from ending of November to early December.
The upcoming festive season till new year shall keep the demand higher and hence we should expect prices to be firm to bullish. The chance of India’s removal of exports ban are slim and hence prices likely to remain strong.
Organic Non Aromatic Rice:
Organic Non-Basmati parboiled exports have surged after India’s ban on Non-Basmati grade. As we mentioned in last edition, Prices are likely to be firm especially for Asian origin. Thai white rice 5% grade prices softened by 1% due to Thai Baht devaluation. Vietnam Rice prices remain firmed. Harvests are due in November for these Asian countries and we should see new crop available by Dec end. Considering the new year and festive demand, Nature Bio Foods (NBF) will like to offer our current and new stocks to the buyers.
ORGANIC FLAX SEEDS
AS per Canada Agriculture department 63% of Flax seed harvesting has been completed in Saskatchewan which is the major flax growing area in Canada. Earlier hot sunny days were deteriorating for the crop yields and acreages were also lower. Yields are likely to be impacted this season.
In Kazakhstan, heavy rain spells were seen in Flax growing regions which delayed harvesting and there are reports of crop damages up to 20% in few areas. India linseed sowing will start by November and crop shall be available by February March.
All these factors are hinting towards tight supplies and upcoming festive season is expected to put strong demand. This shall keep the prices in upward trend from here.
We have seen prices improving in Canada, Kazakhstan & India locally. Not much information is available on Russian crop and prices as of now.
Nature Bio Foods has been able to manage its stock positions and now offering Organic Flax at significantly lower prices. Customers can take advantage of the stocks available in Europe & India at current prices.
ORGANIC SOYBEAN
Long harvest season in Uganda concluded this month. NBF have secured organic beans for our organic soymeal plant from the local farmers from our project. Harvest was satisfactory and prices remained strong till the end of supplies from farmers. Quality of the produce is also good as weather was favorable this time. NBF has started dispatching organic soymeal to its committed buyers.
On other front, Indian soybeans are about to be harvested by November month. El Nino in South Asian countries is strengthening and hence dryness has increased. Yields are likely to be down. Soybean prices are trading under pressure due to higher stocks in India.
Nature Bio Foods owns an organic meal processing facility in India and Africa and crush organic soybean for producing protein-rich organic soya meal. We keep supplying this organic soybean meal to Europe & America around the year.
ORGANIC BROWN / RED LENTILS
As mentioned in last month edition Canada’s lentil production is likely to drop amid heat wave. Estimates are that production may drop by ~20%. Similarly, lentils area has dropped in USA & may drop in India too due to weather concern.
India-Canada recent political tensions may disrupt the value chain in near future which could be adverse for the prices. Tight supplies across all major origins are likely to keep the prices on higher side.
There are developments from Russia to impose exports tax on certain goods including pulses from this month. This move is likely to keep the prices in bullish momentum. Nature Bio Foods works closely with farmers and have been a leading supplier of Brown/ Red Lentils from India.
ORGANIC CHICKPEAS / GARBANZO BEANS
Canada harvest is almost complete. Area under cultivation was higher by ~20% due to improved prices last season. However, the stocks in the country were very low and hence total supplies are expected to be down than last year.
Turkey crop was also impacted by heavy rains and there are estimates of lower supplies from there. There is already news about prices running record high in Australian Markets due to poor crop amid unfavorable weather. Australian crop is expected to be near ~500 Thousand tons against estimate of 540 Thousand tons.
India, Pakistan crop will be sown during November and shall be available for harvest by Feb,2024 onwards. Tight supplies to keep prices in bullish momentum. There are still uncertainties around Phosponic acid presence which occurs naturally in chick peas and requires very careful selection and segregation process. Nature Bio Foods procures organic chick peas from India and Turkey and has stocks available in Netherlands.
ORGANIC SESAME SEEDS
African (Uganda) sesame harvest has been completed & our procurement team has secured some quantity. Poor Latin American harvest and dry pipeline has kept sesame prices on higher side.
India new crop harvest shall start by October end to November. As of now the crop conditions are stable and quality should be good for the harvest.
Currently conventional and organic exports have commenced from India for the old crop. NBF is trying to procure EU compliant organic sesame from India. Buyers can connect with us for sesame contracts for future months.
ORGANIC AMARANTH
In recent weeks, organic amaranth prices have seen a sharp rise and are expected to rise in the future. Stocks are limited in India since the season has ended. Festive demand in India in coming months to keep prices on higher side. Exports enquires are also rising considering the upcoming festive season in Europe & America.
NBF has currently stocks to offer and buyers can connect with us to cover their requirements with us in this scenario.
ORGANIC CASHEW
Cashew prices remained steady last month amid higher supplies. Festive demand in India & overseas to support the prices in near term. Enquiries for Indian cashew has started increasing and NBF are ready to offer organic cashews from our certified farms.
Indian cashews are preferred over Vietnam cashews for its quality & Taste. Nature Bio Foods will be happy to have fixed contracts for organic Indian cashew supplies from now onwards.
ORGANIC PSYLLIUM HUSK
Psyllium prices have been stable in past couple of months. Export contracts are seen picking up as prices have consolidated now. Next sowing is two months ahead and bumper sowing is expected due to higher prices.
Nature Bio Foods is only working on strategic tie-ups with fixed contracts done in pre-sowing period i.e. before October last week.
ORGANIC CHIA SEEDS
Latin American harvest (Paraguay, Bolivia) completed in September. Weather is the most important factor for chia seeds production and quality of the produce. Uganda Chia harvest is expected by November end. Nature Bio Foods already sourced Chia from farmers in July and shall be buying in upcoming harvest.
Low crop availability and dry pipeline are keeping the prices in bullish trend. NBF is actively engaged with the farmers for organic chia seeds and buyers can start securing quantities with us.
ORGANIC QUINOA SEEDS
Poor crop harvest in Peru & Bolivia has disrupted the global pipeline for Quinoa and buyers are aggressively searching for the origins to secure quantities. There are cross country trades happening due to short crop. Prices are running record high.
The EU-compliant material is again a big hurdle amid this shortage. India crop is expected by March till then prices are likely to remain strong. Buyers can connect with NBF to cover their requirements with us in this scenario.
