Mark Greenberg, the President and CEO of Capespan North America, stated in his Market Report for week 13-2018 that California citrus producers continued to face weather challenges that have slowed down the harvest, reduced the expected yield and threaten an early end to the domestic sweet citrus season.
Greenberg also said that domestic Navel oranges were currently being sold at prices seldom seen in March with "40s selling at US$ 16 - 18, 48s and 56s at US $ 18 - 20 and 72s and 88s at US$ 20 - 22 (all prices FOB point of loading in California).
Meanwhile, California's mandarins are selling at US$ 34-36 for 10 x 3 lbs bags.
The CEO of Capespan said the market does not expect "California Navel oranges to go beyond June and that the mandarins would probably not go beyond mid-May, so expectations for the Southern Hemisphere sweet citrus market are running high."
He also said that they expected "the first clementines from Chile and Peru will find a depleted, if not empty market."
"Import volumes will increase as we enter May and by mid-May there should be an interesting mix of easy peelers from Chile, South Africa, Peru and Uruguay with good volumes expected throughout the summer," he stated.
Late mandarin volumes from all sources in the Southern Hemisphere are expected to continue increasing as more acreage comes into production and more is planted. However, increase consumption is expected to keep pricing relatively stable.
The navel orange harvests in South Africa and Chile are running slightly later than last season and there is an expectation that there will be a gap on the US East Coast (USEC) between the end of the California season and the start of imports. "Imported navel oranges from South Africa will begin to arrive in mid-June in light volumes. But South African and Chilean navel volumes will ramp up in July to levels better able to service the market and retail programs," Greenberg states in his report.
"The early start to the imported navel season should deliver value to growers and exporters not so much in the form of higher prices - although we are expecting stable and attractive prices this summer – but, rather, in the form of lower inventory build-up throughout the season. The impact of a low inventory build-up will result in the delivery of better quality to chain store customers and less shrink at retail as well as in the value adding process and distribution chain," Greenberg concludes.
Source: SimFRUIT