Drought and heat in Spain during the months of May and June, along with stress on olive tress due to this year’s record output, are expected to impact olive oil yield in the country, according to Oil World. While the drought has raised expectations for grains, output of olive oil, one of the nations main exports, may drop by 40%. Last month prices for extra virgin olive oil rose 10% and prices for virgin olive oil rose 21%. The current season’s record output of 1.92 million tons is expected by some Spanish cooperatives to drop below 1 million for the 2014-15 season. Speculators have raised concerns that a lack of available olives will impact the global market by increasing prices but others suspect that Spanish olive stocks from this year’s bumper crop would help prevent this and that other factors are at play. Others have tried to cash in on the rising market, with some mills even shutting down sales in an effort to drive prices higher.
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