| As anticipated in our previous update, pressure continues to be most pronounced in the snacking styles segment. Buyers have returned to the market with steady interest, and while overall trading activity remains moderate, demand for premium styles is firm and focused. The market remains cautious, but it is clear that snacking styles are where supply constraints are being felt most acutely. Availability of Style 0 and Style 1 remains extremely limited. While some buyers are still attempting to secure Style 1, volumes appear insufficient to meet demand. As a result, some may consider a shift toward Style 2 as the most viable alternative. On the other side ingredients styles remain in sufficient supply and prices remain under pressure. The uncertainty around tariffs also remains present. A recent ruling by the U.S. Court of Appeals states that the president cannot freely impose tariffs, as they are considered taxes requiring Congressional approval. The Trump administration has until October 14/15 to appeal. It will be interesting to see what the outcome of this new episode will be. Given the current dynamics, we continue to recommend securing snacking styles through to the arrival of the new crop. For ingredient styles a bit more balanced approach can be followed, but one should keep in mind that stock positions are tight. |
