Strong Start to New Crop Shipments
- Exports in August were 7,286 tons compared to 4,959 tons last year, an increase of 32.5%
A very strong start to the season with a 32% increase in shipments in August compared to last year, presumably driven by lower prices compared to the past 2 years.
Following political pressure the TMO (government agricultural support agency) announced this week that it will buy apricots to support the market.
The TMO buying price is broadly in line with current market price, so this can been seen as the government putting a floor under the market. The TMO payment terms are indicated as 30 days, whereas the packers are currently paying cash or maximum 7 days terms, so there is no incentive for growers to sell to the TMO.
There is not much fruit for sale in the market as we believe most growers have already sold enough to pay the bills. Most are now going to wait for spring hoping for better prices. There is strong demand from packers.
Prices are stable for small and mid sized fruit, size 0, 1 and 2 prices have increased as have natural and organic apricot prices.
In the light of the above we dont see any factors that could weaken prices in the near to medium term, and there are quite a few factors that could trigger upward movement, especially if the exports continue at current levels.