GWM China Import Fruit Update：Week 38/2015 Citrus

Arrivals of South African oranges remained notable in week 38, and increased further by the weekend as new vessels docked in both the south and east of China. This increase in supply however received strong demand. The bulk of arrivals still expected in week 39, with importers rushing to bring their fruit to market.

Australian oranges were well received in week 38 with most of the arrivals showing reasonable visuals, while eating quality remained excellent. Closer to the end of week 38 price began to increase for Australian produce with good quality late navel able to move between ¥270-290 (count #64, 18kg) while popular good quality brands priced ¥10-30 higher with positive movement. By the weekend prices for good quality increased further.

Although the market was good for most Australian late navels, fruit found with higher percentages of marking were priced lower while soft fruit came under even more scrutiny and priced significantly lower.
Soft fruit coupled with limited marking priced between ¥210-240 (18kg).

Arrivals of South African Midknight fluctuated during the week however noticeably increased closer to the end. Prices began to rise at the beginning of the week and stayed favorable as more fruit arrived by the weekend. This favorable market was primarily due to buyers stocking up for holiday sales.

Midknight remained the most dominant variety of oranges in the market, and continued to show an overall good quality with ideal colouration, limited marking and good firmness. Most of the Midknight priced and found sales at between ¥135-145 (count #48/56, 15kg) as some importers with excellent quality showing limited marking pricing their fruit at ¥150-155 (15kg). Movement slowed by the end of the week as many had already purchased stocks.

Oranges showing softness continued to be heavily scrutinized by the market. To the side South African Valencia exports to China and Hong Kong. Year on year volumes are now up by 24%, which is up 77% compared to the 2013 season. Exports in week 36/37 are far smaller compared to week 35 departures however will arrive post festival, and are likely to be combined with left over and late arrivals from week 35 departures.

Cambria variety continued to be the most dominant South African navel in the market and according to export statistics is expected to increase its market share in the coming week. Cambria showing reasonable quality with uniform colouration and less marking could move at between ¥150-160 (count#56/64, 15kg) as some brands with slightly better visuals priced ¥5-10 higher. Although other late navel varieties were more limited prices generally followed the price set by Cambria.

To the side South African navel exports to China and Hong Kong updated till week 37. To date exports are at 1,85 million cartons which represents a decrease of -2% compared to 2014 or increase of 51% compared to 2013. As anticipated week 36 saw a notable decrease in exports this signaling the end of the season.

The chart to the side shows the different navel and late navel varieties exported to China and Hong Kong. Cambria late navel visibly dominates South African departures. South African Star Ruby remained limitedly available in week 38 with demand still positive despite the higher asking prices. Most of the high quality produce showing firmness to touch, strong red blush, and limited blemishes priced and could find sales at between ¥250-270 (count #40, 17kg). Fruit showing a more scruffy appearance priced in the range ¥220-240 (count #40/45, 17kg) with softness pushing price further down. Exports of grapefruit continue to be seen from South Africa however volumes are minimal.

The lemon market finally saw some change in week 38 with movement for the fruit showing an improvement, this was followed by importers increasing prices slightly further. Supply on the market has continued to remain limited so it is likely there was more demand for the fruit leading up to the festival. Better quality lemons priced in the range ¥300-320 (count #100/113, 15kg), with the top brand available showing consistent elongated shape and uniform yellow colour pricing above ¥320 (15kg). Most other lemons on the market were trading between ¥260-280 (count #113, 15kg) showing any combination of green colour, rough surfaces or more marking.

Soft-Citrus from Australia remained dominant in week 38 with competition limited. Prices increased primarily due to a combination of increased demand and more scarce supply as the season gradually comes to an end. The premium brand of Honey Murcott on the market showing excellent consistentquality was able to move in the range ¥450-480 (count#80/90, 18kg), as fakes of the brand priced in the range ¥330-350 (18kg).

Image Source: Pixabay