China: The price of bananas shoots up
This week, the price of good quality bananas in the main production areas was 1.46 yuan [0.22 USD] per 0.5kg. In comparison with last week this is a rise of 0.13 yuan [0.02 USD] or 9%.
Guangxi experienced rain and lower temperatures, which put the bananas at risk. Some of the visiting merchants turned from Guangxi to Yunnan in search of product. As a larger number of visiting merchants in Yunnan were asking for the product, the banana farmers bargaining position was relatively strong.
The price increase of yellow bananas on the consumer markets slowed down, as the force of the banana price increase was not sufficient, and the active market participation of visiting merchants further reduced it. The volumes of bananas in production areas is not large, so for a brief period the price of bananas in production areas will remain high. Weather forecasts predict frequent rain in Yunnan next week, and a further price hike is to be expected.
Publication date: 11/30/2017
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