The formation of a new olive oil producers' trading group, the Compagñia Española Comercializadoras de Aceite SA (CECASA) last week in Spain, put an extra £150/tonne on mill prices within 48 hours. It comprises over 250 oil producing co-ops in the south of the country. When it was launched, CECASA announced its intention to take at least 100,000t of new season oil into private storage. The end of June saw ordinary grades of extra virgin, which started the week trading at £1,650/t, hitting the £1,800/t mark ­ "if anyone could be found to quote," one trader told The Grocer. However, not only Spain is keeping its powder dry. The day after CECASA was formed, Tunisia suspended quotations and trading in olive oil until the market stabilised a new levels, making trading more difficult for anyone needing physical stocks. July is always a busy month for Spanish packers, who this month are packing for July and August, as well as the holiday trade. Until last week, the market was fairly tight, but looking forward to a good Spanish crop. At this time of year, there would normally have been a steady clearing of old stocks at gently declining rates to clear tanks for the first new season oil in late November. Instead there has been a stampede to secure stocks for the next fortnight. And even if Spain's crop does generate the long awaited million tonne olive oil bonanza, the prospect of 10% being squirrelled away will be enough to keep the market firm. {{PROVISIONS }}