By Mark Greenberg
US: Clementine and mandarin prices firm up
Clementine and mandarin prices are firming up in all regions of the US owing to a
relative shortage of product in the market combined with strengthening demand.
Indeed, the heavy week to week inventories of easy peelers that had been apparent
through most of July and the first weeks of August have disappeared such that
product arrivals are now insufficient to meet weekly demand. This gap in supply has
come about as exporters transition from traditional clementines to late mandarins
and has allowed sellers to clear their ageing clementine stocks and catch their
breath before the late varieties arrive.
Chilean clementine loadings dropped significantly in Weeks 30 through 33 which has
translated into lighter arrivals in Weeks 33 through 35 and light arrivals expected in
Week 36. Nonetheless, through Week 34, cumulative Chilean soft citrus loadings to
the east coast were up 33% from 2011 but were down by 20% on the west coast.
Total soft citrus loadings through Week 34 (both coasts combined) were up by over
10%.
Through Week 35, clementine prices on both the east and west coast have moved
upward to US$ 28-30 for the 10 x 3 lbs value-added package on standard sizes and
down US$ 2 for smaller sizes 4 and 5. The impact of these higher prices on grower
returns for the original arriving 15 kg cartons will be attenuated by poor pack-outs
owing to the age of the late stock as well as by erratic condition of much arriving
product.
Chilean late mandarins and W. Murcotts are expected to become widely available in the market in Week 36 and onward. Peruvian W. Murcotts continue to be available and South African late varieties will also shortly be available.
Expect to see a robust market for late mandarins from all sources with prices in
Week 36 being quoted (although not necessarily paid) in the US$ 36-40 range for 10 x 3 lbs in standard sizes (Size 3 and larger). Size 4’s are a couple of dollars lower and
size 5’s a few dollars below that. Chile is expecting to have a strong W. Murcott crop
and it is expected that by Week 38, prices may start to soften to the US$ 34-36 range. But with strong autumn demand, prices ought not to weaken much below that.
Navel Oranges:
While the soft citrus supply and demand have come more into line, the same cannot yet be said for navel oranges. Through Week 34, Chilean exporters have shipped 4 140 metric tons of navel oranges into the US, a mass equivalent to 2.76 million (15 kg) cases. This is almost 54% more volume than was shipped from Chile over the same period last year with most of this increase arriving on the east coast. This has come in a season where South Africa and Australia have also increased their exports to the US as has been reported earlier.
2012 2011 % Change
The result is that the US has an uncomfortably high level of navel orange inventories
in the hands of many receivers. Market prices reflect the over supply as sellers
cannot afford to be excessively discriminating in accepting purchase orders. The
situation is mitigated, to some degree, by the fact that school is back in session and
citrus consumption is on the rise. The momentary general shortage of easy peelers in
the market can also only help navel orange movement.
Through Week 35 the price for 40’s, 48’s and 56’s has been in the US$ 20-22 range
with some sales at US$ 18. Smaller fruit is selling at US$ 18 for 72’s and US$ 16-18
for 88’s. It is not likely that we will see a firming up of this price level for a few
weeks. Inventory levels remain high and boosting prices will only serve to slow down
much needed movement. With big navel orange volumes still expected to arrive from
Chile, and with more navels and, later, Midknights, from South Africa, it looks as
though the market will be well-supplied for some time yet.
Minneolas:
Peruvian Minneola arrivals in the US are now complete with Peruvian shippers having
exported over 330 containers to the US. In this crowded citrus market, Peruvian
Minneolas are moving at US$ 12.00 across the board. Product movement has been
slow, but with fewer sellers in the market (as many of the early players have
completed their programs), movement of the remaining fruit should pick up. We would hope that the gap in clementine volumes will enhance Minneola movement, but this has not yet been widely observed.
For more information:
Mark Greenberg
Tel: +1 514 739-9181 Ext. 102
Mob: +1 514 688-3579
[email protected]