| Market Report Locust Bean Gum September 2007 |
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| Donnerstag, 04 Oktober 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||
 Dear Business Partner, Today we take pleasure in letting you, Dear Partners in trade, participate in our knowledge we could secure recently about the expected development in the market for Locust Bean Gum. Throughout the last months, prices for the raw material dropped, due to the expected good harvest results. Listed below please find some further data which we could collect in the various countries of origin:
In comparison to former years, and judging with the background of our long
experience, we dare say that the prices for the raw material, the
kernels of the carob tree, are presently hovering on a rather low level.
Since the carob trees themselves are usually not cultivated but grow wild
there is now the danger that the farmers may just not bother to collect
the new crop in case the yield will be not interesting enough, due to low
prices.
Furthermore, we have to consider that the quite dramatic development in the exchange rates EUR ./. USD puts yet additional stress on the trade. These facts should also not be neglected when you schedule your future purchases. Generally speaking, December and January are the most active months – when the big, international companies start buying to cover their demands of the following 6 – 12 months. This is the reason why we would like to suggest to our customers in the present situation to concentrate their purchasing activities either on October /November or on the months February/March, next year. Unfortunately, we still have to observe a sometimes boyant tendency to speculation amongst the suppliers – even in view of rather sound harvest results and a good carry forward. In fact we got to know that one Spanish Kibbler is still holding several thousand tons of kernels in stock, purchased at high prices, and now tries by all means to keep up the prices for raw kernels, also from the new crop. The high-price period we experienced recently, prompted many users to replace Locus Bean Gum by the more economical Tara Gum. But since the disposability of that commodity is limited and thus may possibly never be a full-grade substitute for Locust Bean Gum. Consequently, we recommend you to provide for your deliveries due between October 2007 until February 2008 soonest, in order to be prepared for any sudden changes to the worse in the LBG market. Please do not hesitate to contact our A2 Trading Team for any further information you might require. All of us will be pleased to submit our specified offers to you. With best regards Mirko Ahrens |
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