New price forecasts extend businesses' ability to plan purchases more accurately, reduce price risk exposure and increase the overall predictability of earnings
The launch extends the coverage for price forecasts to over 60 commodities, which have all been fully integrated into the award-winning SaaS platform, Mintec Analytics. The unique platform provides access to over 15,000 commodity prices to support businesses:
• Control exposure to price risk
• Optimize the timing of their supplier contracts
• Increase the predictability of their earnings
"These new price forecasts and hedging advice will help our customers in North America and across the globe to understand future price trends better so they can optimize their buying strategy and increase the profitability of their business."— Spencer Wicks, CEO of Mintec
In 2021 U.S. beef production was nearly 28 billion pounds, while Americans consumed over 8 billion chickens. Globally, in 2021 sunflower seed oil consumption amounted to over 20 million metric tons worldwide.
These figures demonstrate that for many companies across the food and beverage sector, beef, chicken, and sunflower oil represent a significant portion of their raw material purchases and signify a large percentage of their procurement costs.
In addition, the high price volatility associated with these markets makes it difficult for corporations to plan their beef, chicken or sunflower oil purchases effectively or adjust their buying strategy when market conditions change.
These new Mintec price forecasts provide businesses with access to actionable price predictions, so food and beverage companies can refine their procurement strategy for meat and edible oils to make substantial savings. The new U.S. beef and chicken forecasts complement the extensive range of U.S. relevant forecasts in Mintec Analytics, including wheat, corn, coffee, sugar, cocoa, orange juice, SMP, soybean and base, and ferrous metals.
The addition of sunflower oil recognizes its global importance to the food sector and is also in response to the impact the war in Ukraine will have on global production in 2022 and beyond. The new forecast will enable global businesses to plan purchases and mitigate evolving market risks.
Mintec's forecasts for U.S. beef (Mintec code: ZK33 - Cattle steer ddwt US ), U.S. chicken (Mintec code: OL01 - Chicken ddwt grade A NY US) and sunflower oil (Mintec code: SFOR - Sunflower oil fob NW Eur (MBP)) are regularly reviewed to deliver target prices for up to 3 years alongside timely hedging recommendations. They enable businesses to optimize the timing of their negotiations with suppliers and avoid locking in long term contracts at high prices.
The sunflower oil forecast is based on the Mintec Benchmark Price (MBP), exclusive to Mintec and subject to a published methodology and rigorous processes. Mintec's governance and controls framework, policies and price reporting practices align with IOSCO's Principles for Price Reporting Agencies (PRAs), applied to all MBPs.
Mintec's forecast methodology incorporates a comprehensive set of fundamentals data, macroeconomic and technical analysis to deliver reliable price predictions. This methodology has been tried and tested for over 15 years and is curated by a team of analysts with substantial expertise in commodity price forecasts.
The new forecasts deliver a competitive advantage for companies that are reliant on these largely speculative and opaque markets. By having access to reliable forecasts, businesses are empowered to adjust to unfavorable market conditions while mitigating commodity price volatility to maximize their profits.
Mintec enables the world's largest food and manufacturing brands to implement more efficient and sustainable procurement strategies. We do this through our cutting-edge SaaS platform, Mintec Analytics, which delivers market prices and analysis for more than 15,000 food ingredients and associated materials. Our data and tools empower our customers to understand prices better, analyze their spend and negotiate with confidence.