Conditions in the Chinese banana market look good. Prices are rising with the largest increase taking place in banana production areas in Myanmar. Many production areas report that the enthusiasm of visiting traders is growing prior to the arrival of colder weather. The demand for top-quality bananas in particular is growing fast. Demand for premium bananas from Laos and Xishuangbanna exceeds supply. Furthermore, banana growth slows down during colder weather, which means that the production volume declines. That is the main reason market prices are rising.
However, people in the industry say that market prospects are not that positive. When winter arrives, then visiting traders will become more hesitant and wait to see how the market develops. Even now, the colder weather last weekend made visiting traders act with caution. The frequency of their orders is slowing down. In other banana production areas, unaffected by the colder weather, visiting traders are as enthusiastic as always. There is a growing gap between the prices of top-quality and medium-quality bananas unaffected by colder weather.
Source: ncw365.com