Markets & Pricing 101
Simplifying the two commonly used pricing models for oils.
“Board and Basis” vs “Flat Pricing”
Board and Basis
Board and Basis pricing ties the cost of oil to a publicly traded commodity index, such as the Chicago Mercantile Exchange (CME), plus a fixed “basis” that covers processing, packaging, and logistics. This model allows buyers to take advantage of market dips or secure future pricing through hedging, offering flexibility for those who monitor commodity trends closely.
| What | Factors |
|---|---|
| Board – Cost of raw material | Trading rates at the Chicago Mercantile Exchange (CME) – current and future |
| Basis – Cost of processing | Refining, shrinkage, and shipping costs |
Oils: Soybean, canola, cottonseed, palm
Flat Pricing
Flat Pricing provides a single, all-inclusive cost per unit that remains fixed for a set period. It’s simpler, predictable, and preferred by buyers prioritizing budget stability over market fluctuation.
| What | Factors |
|---|---|
| All combined: raw material + processing | Original source cost, refining cost, supply vs. demand, seasonality, and shipping cost |
Oils: Olive, avocado, corn, safflower, sunflower, peanut, and other organic oils
Other Pricing Influences
Geopolitics
People at war are not available to farm, and nations trying to leverage diplomacy redirect exports to achieve political goals — these supply fluctuations result in price variations.
Weather
Conditions determine how much a region’s crop yields and its quality, especially at planting and harvest times.
Shipping
Seasonal demand for goods creates freight backups at major ports. Unexpected periodic increases in shipping times and costs are now part of the “new normal.”
Stay Ahead With Market Insights From Catania Oils
The global oils market changes fast. Catania Oils provides weekly Market Updates and Monthly Olive Oil Reports covering trends affecting oil supply, demand, and pricing—from geopolitics and harvest conditions to shipping disruptions and consumer behavior.
Each report helps you stay informed, protect your margins, and plan with clarity:
- Reduce Risk Through Awareness: Insights into oil availability and pricing drivers, from weather and crop yields to geopolitics.
- Buy With Confidence: Understand why the market moves so you can source strategically.
- Expert Guidance, Always Ready: Analysts and sales experts discuss timing and help align your purchasing strategy.
Access reports here: https://www.cataniaoils.com/get-market-updates
Weekly Market Updates
Covers crop and harvest health, weather, consumer trends, and commodity/oil pricing.
Bi-Monthly Olive Oil Updates
Valuable insights from domestic and international olive oil producers, traders, and buyers.