With large volumes of summer fruit hitting the market, fruit prices have started to drop recently, especially since July, when a large volume of fruit has been becoming more affordable, but apple prices are not affected by such market conditions. In Gansu, for example, apple prices have risen by 187.61% since June.
According to fruit farmers, the temperature dropped sharply after it got warmer last spring, but only apple blossoms were affected by this, with no great effects on apple trees. It was dry last winter and this spring, but fruit farmers did not give up management of the trees. Therefore, if no unexpected incidents occur, this year will be an on-year for apples. However, many fruit farmers reported that the fruit set of apples has not been ideal this year. According to the survey, the reduction in total supply volumes is the main reason for the increase in apple prices, followed by capital speculations and the influence of the futures market.
So far, apples have been growing well in major apple producing areas in China. In the coming months, if there is no major natural disaster, the production is expected to increase by about 20% compared with last year. After the new crop becomes available in October, the apple purchase price is expected to return to the 2017 level and enters a period where prices fluctuate. It is now July when early apples are becoming ripe. When the new crop becomes available on the market, this should offer a buffer effect on the current price of apples.
Source: Wanguo Fengyunhui