The price of bananas in production areas inside and outside of China recently showed a downward trend. As the banana price began to decline, visiting traders became more cautious with their orders, which further weakened the banana price. However, the market is preparing for the Dragon Boat Festival [June 7th, 2019] and the market reserve of bananas is growing smaller every day. These factors are pulling the banana price up. The banana trade volume is growing again. The purchase price of bananas in Yunnan, Laos, and Myanmar is stable, and the price in Guangdong is rising again.
Data from agricultural wholesale markets throughout China shows that the wholesale price of bananas is quite stable in comparison with the continuously rising price of Fuji apples or the constant fluctuations in the lychee market. Even the consumption volume of bananas is quite stable, despite competition in the domestic fruit market from apples, watermelons, and lychee.
The main reasons that influence the purchase price of bananas are as follows: the product quality of bananas, the desire of visiting traders to prepare stock for Dragon Boat Festival, and the supply volume in different production areas. People in the industry pointed out that the average supply volume from banana production areas inside and outside China is currently limited. The desire of visiting traders to prepare stock is growing stronger, and increased demand during Dragon Boat Festival is pulling the price up. There is still room for the price to rise even further.
Source: ncw365.com