Little by little, olive oil is falling towards prices that fit more with normality. This week, the ton of oil has started with a fall to a level not seen since the start of July 2023, at 6,656 euros per ton for the spot price of the raw material in the Spanish market. This price assumes a reduction of 26.5% from the historical highs that were reached in January, at 9,053 euros per ton.
The market is assuming that the oil production deficit will be reversed this year, after the notice from the Ministry of Agriculture itself, on October 4. According to the authorities, oil production will be enough to cover the consumption of the entire country, as long as the weather conditions do not spoil the harvest in the last months of the year.
If everything falls into place as expected, raw material prices will continue to fall in the coming months, as the situation normalizes. The tensions in prices have reached the point that more than 9,050 euros per ton of extra virgin olive oil were paid in the Spanish marketat the beginning of the year, the most expensive that has been paid since records exist, and well above the historical average.
Before the price increase that began in 2021, the average was about 2,500 euros per ton in the market, and if the entire historical spectrum is taken into account, the average is 3,256 euros per ton, less than half of the current prices and almost a third below those paid in January.
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