Steady exports despite higher prices
- Exports in August were 5,537 tons compared to 5,429 tons last year
Despite export prices 14% higher on average than August last year, sales were remarkably steady in the first month of 2023 crop. Higher prices also indicate that there were few preseason sales at lower prices, which may give traders more confidence that their competitors have not locked in cheaper purchases.
Supply of good quality is tight, the majority of fruit in the market is speckled and or hail damaged. Sizes of new crop are mostly large, size 0 through 4. There is a slight premium for size 0 and 1, but size 2 through 6 are more or less the same price. Though the crop is short over all, the shortage will be most notable in size 5 through 7, popular sizes for retail.
August saw strong demand and prices increased from 120 to 150 Lira per Kg for raw material. By the end of August first week September the market settled at 150 Lira per kg for clean fruit. There is a 30 to 50% discount for blemished fruit.
Given the lack of supply in the market we feel there is a potential for prices to increase. The only factor that is currently holding the prices steady is higher interest rates discouraging packers from borrowing.
The Lira/$ rate is 26.88