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.
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