Market Report February 2025
Entrepreneurial spirit in turbulent times
For 100 years, the name Lamotte has stood for entrepreneurial spirit in turbulent times: In 1925 – during the post-war period and with inflation just beginning to subside –, the first Lamotte decided to found the company. His signature is embossed on our anniversary logo.
Today, we continue to create sustainable solutions for everyone who works with and for us – from customers to suppliers and employees. A significant step was the introduction of a new enterprise management system at the end of 2024, which would at times be associated with considerable turbulence. Please be assured: We are working on getting you and ourselves back into calmer waters!
Vegetable oils
In the rapeseed market, the sowing figures and expected demand from the biodiesel industry point towards a high price level into the summer. In the case of sunflower, the rationing of the previous year’s quantities is progressing with an expected shortage of export supplies from Ukraine and southeastern Europe. Prices are trending upwards; covering demand is advisable. For soy, we recommend market observation: a large South American harvest is pushing into the market, and demand could decline due to the trade dispute with China and the U-turn in US energy policy.
The market for organic commodities remains very tight, with no prospect of improvement before the new season. Fixed prices due to low availability and, in some cases, very poor quality pose major challenges for the Eastern European organic sunflower market this year. This is exacerbated by a disappointing organic rapeseed harvest, additionally backing up prices. Good quality seed lots are almost sold out and the price level is high. Organic soybean oil is currently cheap in comparison. Particularly for Q2 and Q3, it is likely that market participants turn to soy due to a lack of alternatives, potentially changing the price situation significantly. We advise coverage as soon as possible until the end of Q3.
Organic soybean oil is currently cheap in comparison. Particularly for Q2 and Q3, it is likely that market participants turn to soy due to a lack of alternatives, potentially changing the price situation significantly. We advise coverage as soon as possible until the end of Q3.
Organic coconut
The price spiral is moving inexorably upwards. The drivers are the current weak harvest season, a lower oil yield, the inexistence of harvest surpluses and the very high demand for coconut milk and coconut milk powder, which leaves fewer raw materials for oil production. We recommend covering requirements until the end of Q3. Stronger harvest months will follow thereafter, during which prices usually fall.
Groundnut
Harvest expectations in the main producing countries are positive. We advise coverage until Q3 at the current low price level.
Organic linseed
Increased world market prices as a result of the increase in import duties for Russian linseed on January 1, 2025. We buy exclusively from Kazakhstan and availability is good.
Organic macadamia
We have seen the first price increases since the end of 2024 due to increased demand and stocks of the old harvest coming to an end. The new harvest in Kenya is expected to start towards the end of February. We advise coverage for the next four to six months.
MCT
Availability in Europe is beginning to ease. Both palmkernel- and coconut-based qualities are largely available at short notice at stable prices. Only MCT C8 is in very short supply. We still have small quantities available promptly. For conventional grades, we advise coverage until the middle of the year; for organic goods, you should plan ahead.
Organic and conventional olive
Following the renewed price drop in the last one to two weeks, we continue to advise covering short-term requirements and waiting for demand and weather developments in the medium to long term.
Organic sesame
The 2024/2025 harvest is still underway and available quantities correspond to normal levels. Prices are rather stable compared to the previous year. Independently from this, higher production volumes in several production countries fall together with slightly subdued demand from China. We recommend covering your requirements until Q4.
Shea
A very tight market with high prices on remaining offers, commonly doubling prices compared to the previous year. We expect the market to remain in this state until at least the new harvest in fall 2025. Coverage until then is advisable. We have recently been able to secure goods thanks to our long-standing good relationships with our suppliers.
Welcome to Biofach 2025
From February 11th to 14th, we will once again be exhibiting at the world’s leading trade fair BIOFACH in Nuremberg – together with our sister company Henry Lamotte Food. Our trade fair team is looking forward to your visit at booth 223 in hall 9! Feel free to contact us directly and make an appointment now to meet us on-site.
PCHi
We are exhibiting again this year at China’s largest trade fair for the global personal care industry – and we hope to meet you there!
Visit us from February 19th to 21st at our joint booth 5H15 with our exclusive partner and distributor, Guangzhou Shengjiya Bio-Tech Co., Ltd.
Make an appointment with our trade fair team now or drop by our booth spontaneously. We look forward to meeting you in person!
