CatZinfo -Dried Fruits & walnuts

Together with the start of the dried fruits of the 2017 crop from the Southern Hemisphere now entering in the markets, we see a lot of activities in most of our products.

Apparently sales have been good and together with a more optimistic view on the future, now most economies foresee a substantial growth, we as traders are positive as well. If we look for example at the last almond shipments from California, a massive growth is supporting the impression we have a positive outlook for our products: nuts and dried fruits!

Of course the ‘health’ perception related to our products helps as well, now people focus more and more on what they eat if income is rising. Also we cannot close our eyes for the elements in the periphery of our trade such as politics and related with this: currencies.  These will always be uncertain factors and hard to predict.

For time being we see the euro/dollar moving within narrow margins, whereas the Turkish Lira gained some strength, but minimal compared from where it came half a year ago. (US$/YTL 3,68 today)

Dried Fruits

Apricots

In approach to the blooming most buyers and sellers are operating low profile. In other words: it is a dull market. The temperatures in Malatya are low with frost during the nights. At this stage this is positive as the trees remain dormant and the risk of another cold spell after March is declining.

The volatile Turkish Lira is another reason for most exporters to offer only for prompt shipments, as they do not dare to take a risk on the longer term. If the Turkish Lira will strengthen they may run into a loss when receiving the payment.

In general the prices are stable and on a relatively lower level. Covering hand to mouth seems to be a fair strategy at the moment.

Apples

Demand is exceeding available quantities on the spot. Chinese shippers increasing prices as demand continues. For Chilean new crop apples it is too early to say something. For sure quarters will be a hard thing to get.

Banana chips

Continuing story with short supply for immediate deliveries and new arrivals are sold before touching the warehouse. Prices remain high for both wholes and brokens. There are not yet signs prices will ease as with coming Ramadan period traditionally demand will stay in the market.

Cranberries

After the Canadian-European Trade Agreement (CETA) has been approved, allowing Canadian cranberries at 0% duty on the EU-market, there is some discussion going on in Brussels whether USA cranberries still may be subject to a suspension of import duty in case use is for further processing. We will keep you posted.

Meanwhile price levels remain attractive as the oversupply situation has not yet been vanished, but the joint industries working to bring demand and supply back to balance.

At current levels it is not a sustainable situation to grow and process cranberries.

Currants

Greek shippers are in a comfortable position and well sold. On the other hand demand is at a low level as seasonal sales are over.

Prices from South Africa are on the high side and do not yet engage much enthusiasm.

Pineapple/Papaya

The situation remains tight. For pineapple we will have a small crop in the coming months, but to change the situation we shall have to wait till the (bigger) autumn crop will be available. Of course this must be a good crop, but it is too early to say something. Papaya and especially mango are also limited available and it will take some time before new crops will bring some relief.

Prunes

With Californian prices rather firm, the offers for the crop 2017 from Chile are rather wide spread. For a good quality prices are reasonable and in line with last year’s levels. First shipment may leave in March.

Raisins

Most South African shippers are still reluctant to offer out. There have been some ‘test-sales’ to see where buyers are willing to step in. As last year was problematic – having sold before the crop was in – it is understandable serious packers wait till they know what they can produce. The temptation to buy already is strong as certainly for goldens the market is empty. Indications of prices are a continuation of last year’s levels.

California is anxious to see the opening prices of California and still struggling to move the quantities they wish.

In Turkey demand is slow and prices fluctuating according to the rate of the Turkish Lira against the US-dollar.

Iran was trying to maintain somewhat higher prices compared with the Turkish origin, but in order to sell bigger quantities they had to give on prices. On the other hand Iran is doing well on goldens – on an empty market – and qualities certainly in the beginning of the season are improving with attractive pricing.

Chile has opened with not much deviation from last year. Jumbo goldens will be scarce again this year – same as in SA – but at current indicated levels it remains to be seen, who is still interested. It is a beautiful product, but discussing price increases for new contracts with end-users is usually a difficult subject.

Nuts

Walnuts

From California we have more and more sign they are well sold in the higher end qualities (60-80% LHP) and also a product like LLP is hardly to get. Standard answer nowadays is: we are cautious and first like to see what we still can sell.
Fact is: prices are firming in spite of all figures about a record crop (670K tons) and good qualities available.