The rains that occurred in recent weeks in Spain, together with the start of the new oil production campaign, had an expected effect. Besides raising the level of national reservoirs, the fall in water has also had a positive effect on the price of olive oil, which has been sky high for several months now. Its price originally registered an increase that was rarely seen before, now it has started to decrease.
Especially in the week of November 6 to 12, in a drop that now puts prices below 8,000 euros per ton (eight euros per kilo) that they reached not long ago. According to data from Oleoestepa (an olive oil production and marketing company), the price of extra virgin olive oil is 7,750 euros, far from the 8,500 euros per ton reached between September and October.
In just one week, prices fell by 100 euros compared to the previous week. According to data provided by Poolred, the olive oil price information system, the surplus is 7,515 euros per ton, which represents a drop of 3.07% in just seven days. For its part, virgin oil is at 6,725 euros per ton and lampante at 6,495 euros, with a decrease of 3.77%.
A drop in the price of ‘liquid gold’ that we can also see in the weekly information published by the Ministry of Agriculture, Fisheries and Food. In its latest update we see virgin olive oil (100 kilos) at 703.29 euros, compared to 711.55 euros last week. A drop of 8.26 euros (1.16%).
Last October, the first of the new olive oil marketing campaign, shipments were about 78,000 tons, according to data shared by the Food Information and Control Agency (AICA). A quantity lower than the monthly average of the previous season (90,000 tons), although expectations are good. Production was about 36,000 tons, while stocks at the end of October were about 216,000 tons.
In the new campaign, the price paid by companies fell by almost 5% between September and October. Sources in the sector see greater flexibility on the part of oil mills when negotiating prices, due in part to good forecasts for production in the coming months. Some operators are already offering oil for the months of February, March and April at 7.80 euros per kilo. According to the ministry, this year’s production will amount to 765,300 tons of olive oil, far from the average of recent years but 15% higher than last season.