By Mark Greenberg
US: Navel orange market remains in critical condition
Easy Peelers:
The good news in the citrus market is the relatively robust imported easy peeler
price level. Through Week 36, Chilean clementine and mandarin departures from
Chile were running almost 13% higher than last season as of the same date. This
increased volume was, however, mostly felt in July and August and resulted in weak
summer pricing. But the two or three week gap in supply as production transitioned
to late mandarins has allowed the market to recover. While arrival volumes continue
to move upward, the price level is stable as arrivals remain unable to meet the full
market demand.
Late mandarin (W. Murcott and Fortuna) prices are ranging US$ 34 – 40 for the value added consumer package with most sales in the US$ 36 – 38 range.
With the light volumes that have so far arrived in the market, one would think prices
should be a couple of dollars higher. Perhaps the very low prices at which navel oranges are being sold is having a dampening effect on the easy peeler price level.
Bigger volumes of easy peelers from both Chile and South Africa will arrive in the next weeks. A well-supplied market may see prices a couple of dollars down from today’s levels, but we expect a generally stable market to continue.
Navel Oranges:
The navel orange market remains in critical condition with what appears to be an overabundance of product from Chile in the hands of many, all looking for a home. Through Week 36, Chilean exporters have loaded 46,299 metric tons of navel oranges to the US which is the equivalent of almost 3.1 million (15 kg) cases. This is almost 42% more than last season with 46% more directed to the east coast and 35% more to the west.
The limit of the US market’s ability to absorb summer and early-autumn navel oranges has been severely tested.
The market for Chilean navel oranges is today US$ 14 – 16 on small sizes (72’s and 88’s) and US$ 16 – 18 on large sizes (40’s, 48’s and 56’s). South African navel oranges are, on average, trading a couple of dollars higher reflecting the better general condition and consistency of the South African product this season.
The navel orange market is not going to quickly find a higher price level. The Florida
navel orange crop will shortly start and will impact the very important Florida citrus
market. In addition, California navel oranges are expected to start to become
available in the last week of October. Even though this fruit will be heavily degreened, it too will steal business from imported sources. In the absence of a miracle, we do not see prices above US$ 14 – 18 through the rest of the season.
Finally, as though that were not enough, a longshoremen’s strike is looming. If the
longshoreman strike on October 1 (as they now threaten to do) all container piers
operating on the east coast and the Gulf of Mexico will be affected.
West coast longshoreman are also threatening to strike in sympathy. The delays that this strike could produce have the potential to create a devastating impact on the last two weeks of Chilean navel arrivals. The parties to the dispute will resume negotiations on September 17 with the assistance of a federally-appointed mediator.
For more information:
Mark Greenberg
Capespan
Tel: +1 514 739-9181 Ext. 102
Mob: +1 514 688-3579
[email protected]
