Russian fruit market: instability of trade
Review of the Russian market - week 13

Week 13 has shown instability of trade in Russian fruit market being very quiet all over the country after rather active previous week. Moscow had some movements on the market but anyhow not enough to be called “active”. Stocks in Saint-Petersburg are getting full which, at +12 C during a day, is a good reason for sales under cost level. Ural region only, being between Siberia and European part of Russia, has expressed some demand as old stocks were moved further and new ones were still on their way. In general, it was one of the most depressive weeks.
However, arrivals are large enough, about 11 000 palletes with oranges are approaching north from Morocco, more or less the same quantity of potatoes from Egypt coming to the south, plus oranges from Egypt and a few from Cyprus. Only Argentina takes two weeks pause before urging the market from it’s side. As a result the demand is shown for Argentine products more than for any other origin.

Oranges
It seems to be the number “13” is really unlucky for Moroccan oranges. They turned to position “on sale” in Saint-Petersburg after 13 000 palletes arrived in week 13. Prices dropped to 0,87 $/kg for large sizes and even to 0,74 $/kg for little ones. This situation effected sales of Egyptian Valencias : prices in Novo are about 0,025 $/kg higher than those in Moscow. The situation is aggravated by large ratio of little sizes in this season crop. Cyprus oranges are down the 0,70 $/kg level with no demand from traders side.

Lemons
First Argentine lemons have appeared on the market and met good demand – price was 1,15 $/kg but quantities were negligible. The situation will be balanced by means of arrivals – the more lemons come to the market the lower prices they will face. The end of Turkish season is sad – price level is from 0,57 to 0,92 $/kg for all kind of quality levels. As well some Spanish stuff was observed on the market but with quantities to small to talk about any trend.

Mandarines
The leader of sales in week 13 Spanish Ortalines – good quality, sound, layered stuff started on 1,72 $/kg in the beginning of the week and finished on 1,60 $/kg at the end of it. Moroccan story comes to an end with small sizes over and large ones left in stocks – 0,96 – 1,34 $/kg.
Pakistani Kinnows are fevered up and down. In week 13 as all the importers wanted to increase quantities betting for general shortage of mandarins, exporters from Pakistan satisfied their quantity requirements by lowering the quality. As a result there is no shortage at all and prices dropped to 0,845 – 0,92 $/kg in Moscow.
In the meantime fresh Argentine arrivals of Satsuma variety were appreciated on the market as long as quantities not yet came in. Good start with 1,65 $/kg level.
Turkish Minneola is not worthy to be mentioned anymore, traders just want to get rid of it in any way.

Grapefruits
Israel still rules! Prices remained on more or less the same level since last week.

Apples
In week 13 the demand for old crop apples was dominating that for fresh ones. The only variety from southern hemisphere has been searched by traders was Granny Smith but just by the reason that it is still too early to come with quantities. However, the first ones started on 1,66 $/kg level.
As for Royal Gala and Red Deliscious the level 1,45 $/kg seemed to be a limit in week 13. Importers look for quality problems just to cool down extreme expectations of southern hemisphere’s exporters from Russian market this season.
Polish Idared is stabilized on 0,99 $/kg level with satisfactory dynamic of sales. Related to that Chinese Fuji was stable as well on 1,23 $/kg level. Golden from Western Europe was in demand on 1,42 $/kg level, Granny – more or less the same, only market has been more selective to sizes/quality matters expecting fresh arrivals of this variety.

Pears
Williams variety from Argentina remains to be the leader of sales. It is already seen that quantity of this variety on the market goes down so the demand accordingly grows up. After the sales from vessels arrived from Argentina last week and beginning of this one price moved slightly up again – to 1,11 $/kg. Red Bartlett variety was the worst in trade – prices dropped to 1,07 $/kg level, no demand from traders side. Packham and Anjou varieties stayed on 1,17 $/kg level but while Williams is offered these varieties wait for their turn. Other origins just didn’t work in week 13, nor European varieties neither Chinese ones.

Grapes
White varieties finally stepped over red ones with prices but the offer of them on the market was not large. Prices remained high since last week, the difference between white varieties and red ones was about 0,23 $/kg in favour of the first.

Kiwi
Slow general sales in week 13 effected kiwis negatively. Though market for fresh hard fruits has set on 1,84 $/kg but dynamics was not there. In some stocks previous arrivals were offered on 1,60 $/kg level which was higher than last week but still not enough to cover the costs.

Vegetables
The situation with onions were stable bad. Prices remained to be the same – 0,55 $/kg but the demand was not there. Fresh Egyptian potato is knocking the market’s door with considerable quantity of more than 10 000 palletes for next week arrivals to Novorossijsk. Though it was not yet felt on the market the pressure from new crop potato side but the situation might turn worse next week.
Tomatoes and cucumbers remain to be in demand during this season, however the trade is colored in zebra style. In the middle of week 13 prices climbing up since mid of last week started their way downwards. Nowadays cucumbers are at 2,55 $/kg, tomatoes – 2,25 $/kg.

Pavel Bandurovsky
195269, Russia, St. Petersburg,
54, Svetlanovsky pr., letter "B"
Tel.: + 7 (812) 324-2514, + 7 (812) 324-2515
Fax: + 7 (812) 324-2510
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