The futures price of apples has been falling continuously recently. According to Zhifang Hou, a medium-term futures analyst for apples at Founder Group, the main contract prices of apples have been falling continuously since late May, which is mainly due to two factors. Firstly, large volumes of watermelons, a major fruit category, have arrived on the market, bringing to light the disadvantages (high prices, short remaining marketing time) of apples, easing the tension of tight supplies in the spot market. On the other hand, weather conditions in main apple production areas have been favorable, allowing apple growth in the new season to be steadily advancing. There has also been less speculation on weather issues.
Recently, the overall weather conditions at main apple production areas are normal, with little impact from hailing, shared Yaxiong Tian, a futures analyst at CITIC Jiantou. It is expected that the overall production of apples this year will have a significant rebound. The current market prices generally reflect current conditions and future expectations.
Source: China Securities Network