FAQs

Aluminum is vital for industries such as:

• Aerospace and aviation
• Construction
• Packaging (cans and foil)
• Automotive and transportation
• Electrical applications

Copper prices are typically quoted in US dollars per metric ton (LME) or per pound (COMEX).

• Producers: Chile (largest), Peru, China, Democratic Republic of Congo, United States
• Consumers: China (by far the largest), United States, Germany, Japan

Key drivers include:

• Global economic growth and industrial demand (especially from construction and electronics)
• Supply disruptions (strikes, mine closures, geopolitical events)
• Inventory levels at major exchanges
• Currency fluctuations (especially the USD)
• Technological developments (electric vehicles, renewable energy)

In most international markets, wheat prices are quoted per metric ton or per bushel – commonly in US dollars.

As an agricultural product, wheat prices are sensitive to unpredictable factors like weather, geopolitics, supply disruptions, and sudden changes in demand.

Wheat prices are affected by:

• Weather events (drought, floods, frost)
• Global supply and demand
• Crop diseases and pests
• Government policies and trade restrictions
• Currency fluctuations
• Energy and transportation costs

Major types include:

• Hard Red Winter (HRW) Wheat
• Soft Red Winter (SRW) Wheat
• Hard Red Spring (HRS) Wheat
• Durum Wheat
• Soft White Wheat

Weight and application. The female gender (hen) tends to be package for retail sale as a whole bird, bone in breast and parts. The male gender (tom) tends to be cut up or deboned for meats and parts destined for grinding or further processing.

Either pack is acceptable, and for the most part priced similarly until extenuating circumstances prevail.

Delivered.

Small= This size product is normally marketed bone-in into fast food and food service sectors

Medium= This size product is normally marketed into the retail grocery sector

Large/Jumbo= This size product is normally marketed either into the retail grocery sector in tray pack and IQF form or is further processed

Expana will be launching a “Value Added” report which will include observations of party wing pricing

Key price discovery platforms and exchanges include:

• Global Dairy Trade (GDT) auction (New Zealand)
• Chicago Mercantile Exchange (CME) (USA) for butter, cheese, and milk futures
• European Energy Exchange (EEX) (Europe) for European dairy products

The main globally traded dairy commodities are:

• Skimmed Milk Powder (SMP)
• Whole Milk Powder (WMP)
• Butter
• Cheese
• Whey powder

The main exporting regions for dairy products globally are the EU, New Zealand, the US, Australia, the UK and Argentina.

The EU is the largest dairy exporter by total value and volume, meanwhile New Zealand is the most export-oriented dairy country in the world, with over 90% of its milk production going to export markets.

The dairy market is influenced by a complex set of factors impacting supply and demand.

Here are the most significant ones:

• milk production
• trade policy and tariffs
• geopolitical and economic conditions
• processing capacity
• product valorisation
• key consumers trends

Key factors include:

• Weather conditions (such as drought or frost in Brazil)
• Crop diseases (like coffee leaf rust)
• Changes in government regulations such as the EUDR
• Supply chain disruptions
• Changes input costs such as fertilizers and energy
• Currency fluctuations (especially the Brazilian Real and US Dollar)
• Consumption trends and global demand

The primary coffee futures exchanges are:

• ICE (Intercontinental Exchange) in New York: Arabica
• ICE Europe in London: Robusta

By volume, the majority of cocoa products are manufactured into finished chocolate, but chocolate-flavored products such as ice cream, baked goods, compound, and beverages are all produced. Additionally, cocoa butter is sometimes used for health & beauty products.

Most cocoa products in a tradeable form start out as cocoa beans. From there, further processing can turn them into either cocoa liquor (also known as cocoa mass) or a combination of cocoa butter and cocoa powder. These products form the majority of traded cocoa products globally, with cocoa butter and liquor largely being used in the production of chocolate, while cocoa powder goes into any number of products which are chocolate-flavored, such as ice creams, beverages, baked goods and others.

Supply issues caused by poor weather in Western Africa and diseases such as black pod and swollen shoot virus have devastated cocoa plantations, reducing the available supply. Demand has stayed consistently strong, resulting in increasing cocoa prices.

Coffee will generally be manufactured into either roast in bag, roast and ground, or a soluble coffee like instant. Increasingly there is a trend towards coffee extracts, but most coffee will be manufactured to be consumed as a drink in its final state.

For most coffee, the price paid for green (unroasted) coffee is made up of two parts – the futures price for the variety of arabica or robusta, and a differential or basis that accounts for the exact origin and grade. There are other factors like sustainability certifications that add additional cost, as well as storage delivery charges based on location. However, some speciality coffees will often be priced on an outright basis, often agreed directly between the buyer and the producer, based on a direct sourcing model.