Following last weekrsquos sharp rise, olive oil prices are now falling
nbsp
Last week
The olive oil price, went up touching the threshold of 4 euros/ kilo More specifically, the Athinoelia variety, popular in the Italian industry, was sold for 3,9756 euros/ kilo, at auction held at the Agios Dimitrios- Talanta Monemvasianbspcooperative South Laconia, Peloponnese also seenbspThe olive oil market becomes ldquo turbulentrdquonbsp
nbsp
This weeknbsp
This week brings falling prices and steep reductions in demand and buying concern by the part of the Italian industry and commerce As a result, Koroneiki olive oil prices went from 3,65 to 3,30 euros/ kilo always for delivery to Italy, which means 0,15 for the miller and even lower for the producer
In Crete, where the harvest and milling has just started, prices seem to move to slightly lower rates
At the same time, the first olive oil sales in Tunisia are shipped to Italy at 2,93 euros/ kilo, a price which is considered high by the bottling industry
What do these all mean?
The aforementioned price ldquomobilitiesrdquo draw a general picture of the olive oil market and confirm our last monthrsquos predictions and what we have repeatedly pointed out in the past
-December is likely to be crucial, as we await the outcome to see whether-if any- Italian buyers commerce/ industry and Greek industry are able to respond to producersrsquo price level set
-The ongoing rise in prices will not lead a continuous upward trend The market is not able to work through such price fluctuations and absorb them
-Prices can, and have to undergo a ldquoreasonablerdquo increase Abrupt upward pricing pressure is not beneficial to anyone, including producers
-Realism, prudence, assertion, organization is the key No deus ex machina can keep prices high and/ or make Greek producers rich It is for this reason that the latters need to repose the trust in their own powers and find their way
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Translated by
nbspSpyridon Chairetis
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