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Low prices may remain for some time

Chinese apple prices falling with increasing marketed volume

Over the past few days, prices of locally grown apples have fallen. With the increasing volume of late Fuji from Shandong becoming available, the purchase price fluctuated at a high level. As a result, prices in the sales markets were sometimes lower than purchase prices. Traders gradually became more rational in purchasing and growers also lowered their asking prices. After Frost Descent, apples are less resistant to storage than before, so historically, prices decline by some extent after this point.

In early October, the market was generally optimistic about apple prices due to declined percentage of higher-grades, lower production in Shaanxi and Gansu, and garlic, ginger, and pear traders joining the market. The demand for supermarket-bond and direct sales-bond products was also good. As a result, prices were high at the beginning of the season. However, with large volumes from Yantai flooding onto the market, market participants soon discovered that purchasing and stocking large volumes was risky, as the total market sales were not large, and the probability of increased production in Yantai was also high.

Following this period, traders and cold storage owners started to purchase cautiously while growers were actively selling. Some traders and large growers who were initially optimistic about the market outlook also changed their attitudes, not to mention that after Frost Descent, apples cannot stay on the trees for long. Therefore, around Frost Descent, market prices in Yantai, the main apple production areas in China, dropped significantly. It is reported that the price of grade-80s in Yantai dropped from 3.2 yuan per half a kilo to about 2.8 yuan.

At present, consumption before the Spring Festival in the coming year is difficult to return to the normal level of previous years, and the purchase price of citrus, an alternative to apples, is relatively low, which has a great impact on apple sales. In the coming months, apples marketed will mainly be dominated by lower-grades. The price difference between the production areas and sales markets will return to normal and prices may continue to fall.

Source: Apple Planting

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