High temperatures affect quality, price gap stalls trade
The global olive oil market enters Week 43 under mounting pressure. High temperatures in major producing regions — Spain, Greece, and Italy — are affecting oil quality and widening the price gap between freshly pressed and older stock. As a result, trading activity has slowed, with producers and buyers preparing for a potential supply crunch in the coming weeks.
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Market dynamics & price trends
Quality challenges
This week's main concern is the lower quality and weaker flavour of the new-season olive oil, particularly in Spain. Heat during harvest has impacted both taste and acidity levels, making it challenging for producers to meet buyer expectations.
Fresh vs. old stock
- Old crop prices: Bottlers expect lower rates.
- New crop prices: Fresh oil commands a significant premium.
The sharp price divide has frozen transactions, as buyers hesitate to pay more for oil that does not meet expected quality standards.
Transaction standstill & tender delays
Many tenders are being postponed until November as traders anticipate better quality and more stable pricing once temperatures cool.
Country-by-country market update
Spain olive oil market: New crop under pressure
Spain's new olive oil crop has started, but market activity remains muted. Producers are waiting for cooler weather to improve flavour and organoleptic quality.
Old crop prices:
- EVOO: €4.17/kg
- VOO: €3.69/kg
- Lampante: €3.45/kg
New crop prices:
- EVOO: €5.29/kg
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The price differential between old and new EVOO continues to discourage active trading.
Greece olive oil market: Limited supply and quality concerns
Peloponnese
- Long waiting lists and limited offers are reported.
- EVOO: €4.20–€4.50/kg
Crete
- New production is slowly starting in northern Crete.
- Quality is below average, with higher acidity (starting around 0.4) due to olive fly damage and hot weather.
- Suppliers are holding higher-quality old stock to blend and balance the acidity of new oil.
Old crop prices:
- EVOO: €4.20–€4.60/kg
- VOO: €3.60–€3.95/kg
- Lampante: €2.85–€3.30/kg
Italy olive oil market: Strong demand for Greek oil
Italy has a limited domestic olive oil supply, resulting in strong demand for imports. As a result, buyers are sourcing lots of Greek olive oil to fill the gap.
- Best Cretan oil: Up to €4.60/kg
- Peloponnesian oil (lower grade): €4.15–€4.25/kg
Long waiting lists and competitive pricing reflect the high oil demand.
Market outlook: Potential supply crunch
Looking ahead, the olive oil sector faces a period of uncertainty. With subdued trading and ongoing weather challenges, producers and traders expect heightened market tension through late October and early November. Delayed harvests and quality concerns could result in limited availability and upward price pressure across Europe.
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