The number of visiting traders grew in the period leading up to New Year's Eve. Market supply also increased speed. However, the overall banana supply volume declined because of natural disasters and the volume of premium quality bananas suffered the most. The demand for premium quality bananas exceeds supply. The price naturally rises, though the increase is not large.
After New Year's Eve, visiting traders turned their attention abroad because the supply volume in Chinese production areas was limited. Visiting traders went to Laos and Myanmar to purchase bananas for the period around Chinese Spring Festival [25 January, 2020]. As a result, domestic supply and demand found a balance. The prices in production areas in Laos and Myanmar slightly increased. The price of premium quality bananas in particular showed a rising trend. The highest price of bananas in Bhamo, Myanmar, is around 5.2 yuan [0.75 USD] per kg. However, the trade volume is quite small. Later in the season the number of visiting traders declined, because the price became too high for their taste, and as a result the conditions in production areas in Laos and Myanmar began to stabilize.
The current price of bananas is not as high as around this time last year. People in the industry state that the market conditions were better last year. This year, many traders tried to beat their competition. They rushed the market too early. When too many traders rush the market early they flood the market with bananas, creating a "traffic jam". The price naturally rises in response to excessive supply. It is for that reason that the market conditions this year are not as good as last year. The prices of premium quality and mediocre bananas are currently growing further apart. Most prices are regular, but some bananas sell for as much as 5 yuan [0.72 USD] per kg. Examining these prices always leads to the same conclusion: product quality is key.
Source: ncw365.com