Citrus – Easy Peelers:
The easy peeler market continues to absorb the substantial volume of fruit that has arrived in the last few weeks from Peru, Chile and South Africa. Inventories of soft citrus on the USEC are declining to more manageable levels and the market is dominated by the last of Chile’s clementines and W. Murcotts and Tangos from Peru.
The slower than expected Chilean late mandarin harvest will serve the market well. Through week 32, Chilean mandarin loadings to the USEC were at 6,886 metric tons (or approximately 460,000 cases), the first light volumes of which are now hitting the market. This represents a substantial decrease from the 17,947 metric tons (approximately 1.2 million cases) that were shipped to the USEC over the same period last season. Shipments to the USWC are also showing a similar decline with 3,283 metric tons shipped through week 32 as compared to 7,309 metric tons shipped last season through the same date.
Peruvian W. Murcotts and Tangos have been arriving on the USEC since mid-July. Through week 32, Peruvian shippers have loaded almost 1.5 million cases for the USEC and a further 250,000 cases to the USWC.
Today, the USEC market is US$ 28 – 30 with the high side of the range for late mandarins and the lower end on the clean-up of Chilean clementines. Uruguayan easy peelers are struggling at lower values.
But prices are firming up as the Chilean clementine arrivals decline without an offsetting volume of Chilean W. Murcotts arriving. As Chilean clementines continue to clean up and general inventories deplete, Peruvian mandarins will increasingly have the greatest market share. In spite of continued strong demand, excellent product quality, and lighter than normal arrivals, there will still not likely be a gap in supply. But product will become more scarce in the coming days and we expect that by the end of week 34, prices will begin to firm up. At that time heavier arrivals from Chile should begin while September ushers in a return to more robust easy peeler prices.
Navel Oranges:
Navel orange movement is gaining momentum but industry inventories remain high keeping market prices soft.
Chilean navel orange loadings continue unabated with 43,124 metric tons having already been shipped to the USEC, an increase of over 18 percent from last season through the same week. Loadings to the USWC, at 22,529 metric tons, are up almost 13 percent from last year.
The sixth South African vessel discharged her cargo late in week 33 bringing total South African navel orange arrivals on the USEC to just shy of 27,000 pallets or around 1.9 million cases. The navel orange harvest in South Africa is coming to an end with a total expected volume to the USEC of 2.2 million cases. The last South African navels will arrive in mid-September. South Africa will then take a short hiatus on orange loadings before shipping its USEC-bound Midknights which will become available in the first week of October.
The result is continued soft pricing for navel oranges with large counts (40’s, 48’s and 56’s) at US$ 18 – 20 (mostly US$ 20), 64’s at US$ 16 – 18 (mostly US$ 18), 72’s and 88’s at US$ 12 – 14 and bagged navels in a 9 x 3 lbs configuration selling at US$ 16 – 18. Needless to say, the greatest price pressure remains on small sizes. Program prices are running ahead of the market, especially on small sizes.
But there has been a distinct uptick in navel business over the last ten days. While current high inventories will prevent any immediate corresponding increase in spot pricing, the increased movement will start to lower inventory levels. Accordingly, we expect navel orange prices to start to firm up in week 35 or 36.
Lemons:
There is no substantial change in the lemon market as it continues its unprecedented run. It is expected that lemons will remain in short supply through August meaning continued high prices for a few more weeks. Chilean lemon shippers continue to load product for both the USEC and the USWC bringing the total volume shipped to the USA through week 32 to 4,619 metric tons or 9% more than last year through the same week.
Prices through week 32 remain stratospheric with 75’s, 95’s and 115’s selling at US$ 46 – 48 with some sales higher and 140’s and 200’s are selling at US$ 42 – 44.
Minneolas:
The Peruvian Minneola market continues to trend slightly downward on heavy sweet citrus competition. On the USEC, Minneolas are selling at US$ 13 – 15 for 30 series and 40 series. The smaller 50 series Minneolas are at US$ 8 – 9. Prices on the USWC remain marginally stronger.
For more information:
Mark Greenberg
Capespan North America
Tel: +1 (514) 739-9181