The prices of Chinese bananas steadily increased last week (1-7 March). The production areas in Guangdong and Guangxi are approaching the end of their supply season. Their supply volume is small. In Yunnan some production areas still produce late-season bananas, while other production areas are also approaching the end of their supply season. The overall supply volume from Yunnan is not large either. The Chinese fruit market is gradually recovering from the initial outbreak of the corona virus and visiting traders are slowly returning to production areas. They are competing for top-quality bananas. The price increased as a result of this competition.
The conditions in banana production areas in Myanmar and Laos are quite stable, although the supply volume of top-quality bananas is also limited there. The price difference between top-quality bananas and second-rate bananas is growing. The price of top-quality bananas is around 7 yuan [1.01 USD] per kg, while the price of second-rate bananas is around 3 yuan [0.43 USD] per kg.
The high prices in production areas cause visiting traders to proceed with care. Banana farmers are blindly pushing the price up, which has caused banana trading to slow down this week.