Slow Start to The Season
- Exports in August were 5,454 tons compared to 8,816 tons last year
The season got off to a slow start as exporters tried to stay out of the market and growers refused to lower prices. By mid month prices moderated some 10% from the opening for cash payments, triggering activity.
Many growers have delivered their fruit to the Licensed Warehouse where they receive a cashable receipt without having to fix a sale price. Presumably they hope for a rising market like last year given the similar tight supply situation. The fact that we have started the year with $ prices some 50% higher than we started last year and 30% higher than the average export price last year has not deterred them.
The market has remained stable for the past 4 weeks.
Quality of new crop is lower than last year with more blemishes and lower sugar levels resulting in smaller fruit.
The Lira has been steady around 18.2 to the US $ for the past few weeks but massively negative real interest rates pose a question mark over the current level’s sustainability.
We look foreword to your comments and enquiries.