CatzInfo – Dried Fruits

Trading is getting in full swing, with many activities regarding the new crops from the Northern Hemisphere. After the holidays in Turkey demand for apricots and sultanas is substantial as prices are attractive. Problems for the supply of tropical fruits from Thailand as well as banana chips from the Philippines.
On top of this there are some supply hick-ups due to the fact some goods are shipped per Hanjin-vessels of which cargo cannot be released.
From Brussels we hear rumours the tariff suspension for cranberries (used for further processing) is under discussion and may be changed as per July 1, 2017. As soon as we have further news we will inform you.
The rate of the €/US$ remains ‘flat’ at around 1,12, whereas Turkish Lira increased overnight by 1% against the dollar.

Dried Fruits

Apricots

There is good interest for the Turkish apricots, which makes some sellers eager to increase prices. However other shippers are still in need of some orders and do not follow, which makes the market quite diverse in pricing, with substantial gaps between the various offers.
The crop is safely in and all calibres are available. The quality is good this year.

 Apples

Most shippers are offering the Chinese new crop apple prices now. Prices are well above last year’s level as the crop is disappointing due to bad weather in the previous periods.

First shipments will depart within short.

Banana chips

The banana chips will be one of the headache products coming months. Supply is hand-to-mouth as far as shipments from the Philippines is concerned. The back logs in production are for time being not solved as supply of raw material is short. On top the Asian markets have a heavy demand for the Festival periods. Prices have increased dramatically in origin, whereas situation in Europe is a disaster as well with hardly freely available stocks for sale.

We do not foresee a major improvement until after Q1/2017, so we may well advise you to have a look at your needs till then.

Currants

The Greek crop is of good quality, but as most farmers are disappointed about the prices the sundried currants will bring them, they have sold partly to the fresh- and juice-industry. Consequently, the available quantity this year will be less than last year and it is for this reason prices are higher than last season’s. With the increased demand for the Christmas period ahead we do not see a weaker market till January 2017 – if at all, as demand may well exceed supply so it may even firm further.

Pineapple/Papaya

Though the autumn crop for pineapple and the annual crop for papaya is on stage and factories may slowly speed up their production, demand is enormous and it will take at least one or two months before shipment will run smoothly again. In practice for Europe it will mean – in view of the transit time – a tight supply situation will remain till after Christmas for these products.

Another problem is the mango, as crop is down and substantial less product will be on the market. Prices have increased meanwhile.

Prunes

The bigger sizes from Chile are getting scarce and prices for these sizes are firming. For the smaller sizes prices are stable, though higher than the opening prices earlier this year. We expect Chile will sell out their stocks easily, certainly as California will have only have half the crop as in previous years and for sure at premium prices.

Raisins

The Turkish sultanas are selling well as being one of the cheapest varieties available. The Turkish industry does need this popularity as they have to move 313.000 tons of the new crop plus a carry out of the 2015 crop which will end up at around 350K in total. Anyhow the stronger (seasonal) demand makes some shippers brave again and lifting their prices.

On average the colour is a little darker this year, as some rains during sun drying have occurred.

Californian prices are becoming more attractive as well. They could not maintain the higher level they had hoped for, as the gap with Turkey was growing too big.

South Africa sold on the popular types and only some ‘exotic’ varieties available. It is too early to say something on the new crop.

Chile is only having a problem with the goldens, which are partly deteriorated by the rains during drying, which means a lot of dark and spotted fruits.

Nuts

Walnuts

Finally the game is on: after the Walnut Convention last week, all shippers met and discussed the policy to approach the market. As a result, they started to increase prices, arguing first contracts are in the books and crop might(!) be somewhat smaller. Fact is, we have seen this scenario before: all expecting a good crop so prices should ease, but the American marketing machine has proofed in the past to be able to turn things upside down!

Chile is sold on the higher end products and has many quality issues as well as defaulting a number of contracts.
Eastern European walnuts will be on the market within short as they are the last crops on the Northern Hemisphere.