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    Global Soy Bean Price Rises - Soy Wax Price to Increase Significantly this Year

    Hi Everyone,

    I wanted to give you all a heads up about the changes in the US market which have driven up the price of Soybean Oil and now having a knock-on effect on the price of Soy Wax. Following recent discussions with Cargill, our largest supplier of soy wax, it is clear that this issue is going to be with us until the end of the year and maybe into 2022.

    As detailed in the Bloomberg article via the link below, there has been a massive shift in the demand on Soybean Oil for the production of Biofuels and this has placed a huge strain on supply right across the market, effecting every industry previously using Soybean Oil, including the candle industry for wax.

    https://www.bloomberg.com/news/articles/2021-03-29/world-s-top-agriculture-traders-gear-up-for-green-diesel-boom

    As you will see in the graph below, the stock price of raw soybean oil has doubled since early 2020 and it is still rising!

    Another issue to be hi-lighted, is the pressure now applied to the availability of soy wax across the market, ie: supply is going to be restricted and production times are already extended due to delays in securing supply.

    Thankfully, we have a great long standing working relationship with Cargill and other wax suppliers, and they have assured us that they will support us to the levels experienced last year, which means we should not have any supply issues this year.

    We have been monitoring this situation closely and have continued to maintain prices in this first quarter of 2021, with the anticipation that supply would catch up with the demand and prices would come back down. Unfortunately, the price of Soy Wax has been steadily rising for every shipment since late last year and while, we have been absorbing these prices rises, unfortunately we cannot continue, and prices will begin to rise over the coming months.

    I will also be sending this update out to our email subscribers, as I feel it is important for our customers to have the opportunity to look at factoring in these price increases into their cost of goods and therefore sales pricing.

    Just finally, rest assured we will only be passing on real increases in our costs and once prices begin to come down, we will in turn reduce our prices accordingly.

    Regards

    Geoff

    Managing Director

    Candle Supply