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Olive-oil prices fell to a nine- year low on record production in Spain and rising stocks, combined with lower domestic consumption, Oil World reported.
Spanish olive-oil production in 2011-12 is forecast to rise to 1.56 million metric tons from 1.38 million tons a year earlier, the Hamburg-based oilseed researcher wrote in a report.
“Producers are now claiming that in many cases prices have fallen below production costs,” Oil World wrote. “Domestic consumption of olive oil apparently declined so far this season as a result of the economic crisis and increased availability of attractively priced sunflower oil.”
Spain’s olive crop is expected to fall in 2012-13 to a four-year low on drought and after last year’s “very high” yields, with output of pressed olive oil falling to between 1.2 million and 1.25 million tons.
Olive oil prices in Spain for extra-virgin quality dropped to $2,303 a metric ton on April 4 from $2,348 the previous week, and down from $2,857 in April 2011, Oil World reported.
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