by Mark Greenberg
US: Chilean citrus arrives on East Coast
Clementines:
In Week 27, Independence Day was celebrated in the US on July 4 and Canada’s
national holiday (Canada Day) was celebrated on July 1. The week (and the preceding weekend) was characterized by exceedingly hot and humid weather in many regions of the country with dramatic rain and hail storms and the occasional tornado. Forest fires continue to rage in Colorado.
The week leading up to the festivities saw substantial volumes of Chilean clementines arrive on the east coast, augmented by the first bulk reefer of citrus from South Africa whose cargo of 2 500 pallets was comprised of 60% clementines and 40% oranges.
While chain store business is usually quite active in the lead up to holidays, the July 4 festivities are usually more about water melons, berries and table grapes than they are about citrus. Nonetheless, easy peelers had been moving well through the end of Week 26. With the holiday falling in the middle of Week 27, the pace of sales has certainly slowed down but will pick-up again in Week 28.
Through Week 27, clementines in the east were selling in the US$ 26-30 range (for the value-added package) with most sales in the US$ 26-28 range. Pricing reflects the fact that Chilean clementine arrival volumes have ramped up considerably in the last two weeks and that a substantial volume of South African clementines have also arrived on the scene. Add to that the fact that domestic summer fruit is widely available and citrus needs to be priced competitively to get the attention required to move the arriving volume.
Ironically, prices off the west coast, through Week 27, have been somewhat stronger than the east with value-added prices in the US$ 28-32 range with most sales at US$ 30-32. The fact that the east coast has received almost 70% of Chilean clementine shipments and all South African shipments, helps to account for this differential. As we move forward, we expect to see the east coast price hold the US$ 26-28 value added price (or perhaps soften a little for a week or two). But Chilean clementine loadings will begin to decline in the coming three weeks and will be all but over by Week 32. With that in mind, we anticipate that clementine pricing will stay generally stable with some upward pressure toward the end of July.
Navel Oranges:
California navel orange shippers continue to ship product in the face of Chilean arrivals on both coasts and the first bulk South African arrival last week on the east coast. Chilean navel orange departure volumes, though higher than last season, did not really gain strength until Week 26 when 1 600 metric tons were loaded to the east coast and 620 metric tons loaded to the west coast. By Week 29, there will be alot of navel oranges in the market from all sources.
On the east coast in Week 27, 40’s, 48’s and 56’s were selling at US$ 28-30. The inbetween size 64’s are selling at US$ 24-26 and small sized 72’s and 88’s are already at US$ 22-24. The price on small size fruit is a bit lower than one would expect at this early juncture, but it is reflective of the fact that the South African navel orange crop has tended toward smaller calibers. Ironically, this year Chilean shippers are planning to see a crop with a higher percentage of large caliber fruit. This will be very welcome in the market. In the meantime, large fruit prices should hold firm while small fruit prices could see some pressure.