Due to differing climates, the apple flowering seasons in different regions of China take place at different times, generally from April to May. The recent low temperatures seen in main production areas are having an impact on trees currently in bloom. The abnormal temperatures led to frosts of varying degrees in different production areas.
Some production areas in Yan'an, Shaanxi, which are in the growing stage of fruit setting and budding, were caught in this cold snap in the early morning of April 24, and the impact varies in different regions. For many farmers, the frost has a great impact during the flowering period, and those who suffered from the disaster are frustrated. At present, the price at the spot market has risen by 0.2 yuan.
Industry insiders said that there is a high probability that prices will not increase. On the one hand, the frost is regional and not national, while there is an increasing number of areas that grow apples; on the other hand, the crop has only just entered the flowering and fruit set period, and frost has relatively little effect on the fruit set rate.
In the meanwhile, with temperatures continuing to drop in production areas, the market is worried about the adverse impact of frost damage on apple blossoms, coupled with the stocking demand for the Labor Day holiday and the financial assistance, the spot price for local apples in China is stabilizing and the current stock volume in production areas continues to decrease. In some areas, farmers still have stocks remaining, but they are reluctant to sell and have high price expectations. This, coupled with the influence of purchase prices seen in an earlier period, results in a strong spot price.
In addition, the continued demand for stocking up for the Labor Day holiday has given some support to prices. Recently, frost warnings have been given in main producing areas, while trees in Shaanxi are still in the flowering period and will take about another 4 to 5 days to set the fruit. In the meanwhile, there are many areas in Hebei that experienced damages from the frost. These factors may boost the apple market to some extent, and it is expected that prices may strengthen before May 1st.
Source: Daily Economic News