Prices are lower than they were last year at this time. However, prices aren't falling quite in line with where they were 2-3 years ago (at the all-time 9 year low), though production is nearing those same levels again. It could be quite some time before rates reach similar record lows the future.
While Spain has had a banner harvest, other producing countries like Turkey, Tunisia and Greece have all had decreases in production. Because of that, many are pulling from the good Spanish supply of olive oil. Italy's production remains the same as the last harvest, requiring them, as with most years, to pull from Spanish stock as well. Portugal's production, though small, continues to rise.
Prices have remained low through the spring, but with the new harvest blossoming and production for 2014/15 unknown, many manufacturing mills are reluctant to lock down contracts for Q3 & 4. As the growing season continues, we expect to have more predictions about the next season and the probability of contracts will begin to open up again.
To help you stay on top of this information, Centra Foods has created a new commodity market tracking tool. It allows you to view the olive oil market and compare to price trends from the past. You will get good picture of where the market really is today, enabling you to make smart decisions for your business in the future.