Avocado Market Trends and Prices November 2016
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- Emory Sullivan
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1 Avocado Market Trends and Prices November 2016 Market trends November 2016 The demand has not picked up in November and the market remained with unbalanced sizes profile. The global supply has been slightly decreasing because of lighter volumes from Chile but the total imports into the European market stand +32% above last year level. The arrivals from Chile, after peaking at the end of October, dropped in week 47 (- 28% below average as a consequence of the strikes) and subsequently returned to bigger volumes remaining nevertheless lower than one month ago and +35% above last year volumes. The arrivals from Mexico have been significantly small in week 45 due to the social unrests but remained on average for the season, being nevertheless below last year level and limited in Europe as the origin is focused on the US market. Fruits from Colombia have been available in good volumes but presented ripening problems and heterogeneous quality. Regarding the Mediterranean sources, the supply from Spain have been developing but presented an early maturity rate: the first arrivals from Spain alleviated the lack of big and medium sizes (but contributed to increase the stocks of small fruits) and then started presenting better sizing than the other origins. Israel entered the market in week 47 with moderate volumes which nevertheless stand already +35% above last year level. The last Kenyan fruits, as well as those of other summer season sources, have also been sold. The sizes profile remained strongly unbalanced in November as a large percentage of small sizes composed the offer from practically all sources, with the exception of Spain. It has been particularly felt the lack of counts 12 (frequently not quoted) and the stocks of small grades continued to increase, which affected sales and put pressure on prices, also because of an advanced level of maturity. With a flat demand for fresh fruit and vegetables in general and high retail prices, the product quotations tended to slightly decrease also for medium sizes remaining nevertheless high and above average. At the beginning of December the market is picking up in view of the Christmas operations and presents firm and slightly increasing prices for the most common sizes. In the green segment, prices have been particularly low but the market pressure decreased since the transition between varieties (end of the season for ettinger, beginning for pinkerton) is occurring allowing prices to firm up. Prices HASS avocado - Week 48 (Euro 4 kg ctn) Colombia Chile Israel Mexico Spain F (*) NL UK undetermined D Prices GREEN avocado - Week 48 (Euro 4 kg ctn) Chile Israel Spain F bac fue ett fue NL ett pin bac fue D UK
2 Notes November 2016 F NL UK D Prices for big sizes refer mostly to counts 14 as counts 12 have been almost unavailable. The large price range for medium sizes ( ) in week 48 is due to low prices for counts 20 ; price of small sizes (22-24 ) bottomed 7.00 Euro/ctn in some cases. Chile had problems with delayed phytosanitary certificates. Difficult sales for the fruits from Spain (too high prices in comparison to other origins).
3 Prices November 2016 (Euro 4 kg ctn) Variety Sizes Week 45 Week 46 Week 47 Week 48 FRANCE (*) Chile hass Colombia hass Israel hass Kenya hass ew ew ew ew Mexico hass Peru hass ew ew ew ew South Africa hass ew ew ew ew Spain hass Chile fue ew ew ew ew Israel ett Peru fue ew ew ew ew South Africa ryan ew 8.00 ew 8.00 ew 8.00 ew Spain bac ew ew ew fue ew ew ew ew NETHERLAND Chile hass Colombia hass Kenya hass Mexico hass air Spain hass Israel ett pin Spain bac fue U. KINGDOM Brazil Undet Chile hass Undet. Israel hass Undet Spain hass Undet Israel ett Undet. South Africa gr Undet Spain bac Undet GERMANY Chile hass 18 (20 ) Colombia hass 18 (20 ) Kenya hass 18 (20 ) Mexico hass 18 (20 ) Spain hass 18 (20 ) Israel ett Spain bac * FOT port-of-delivery (ex-quai): quotations can be increased 10-15% to obtain the price of the product delivered in the main centres. Ew = ex-warehouse
4 Market perspectives No major changes are expected in the European market in December. The supply should remain stable, with about tons of fruits from Chile (whose arrivals will start to significantly decline in January) still to be sold until the end of the season. The arrivals from the Mediterranean sources, with higher potential than last year, should accelerate but the bulk of production will be on the market in January as the harvest in Spain and Morocco is delayed because of heavy rains and the season for Israeli hass has just begun. Morocco will most probably enter the market in week 50 and higher import volumes are expected from Colombia since Mexico should remain concentrated on the US market. The new arrivals will be easily absorbed by the market and prices could even firm up if the demand will reactivate with the Christmas programs. However, since promotions are mostly focused on big grades, the pressure on small grades could continue until the end of the year and the market may become a bit tense in correspondence of the end of the year because of an increased demand. Traders expect a good sales activity starting from mid- December hass ' green (16)' Chile Colombia Mexico Peru Kenya South Africa Brazil Spain Tanzania
5 Chile Israel Spain Peru Kenya South Africa Brazil Notes This report has been prepared as a service to exporters and industries in developing countries by the International Trade Centre (ITC) with the objective to provide indications on market prices and market trends to support producers, exporters, sector associations and other private or public organizations in their decisions and policies. Quotations are price indications that give a global view of the market; prices are average FOT wholesale market prices; if not otherwise stated prices are per 4 kg carton. products imported by sea/truck; all prices are in Euro. Exchange rates of 29/11/ EURO 1 USD United Kingdom 0,852 0,803 USD 1,061 1,000 Euro 1,000 0,943 General abbreviations ctn = carton org = organic prep = pre-packed ex-quai = ex-port of delivery rte = ready to eat air = imported by air fot = free on truck sdls = seedless sea = imported by sea gr = green tru = truck-lorry Product abbreviations ard = ardith fue = fuerte pin = pinkerton bac = bacon hass = hass reed = reed edr = edranol lula = lula ryan = ryan ett = ettinger nab = nabal trop = tropical fino = fino wur = wurtz zut = zutano mini= stoneless avocado / avocat cornichon / mini aguacate / cocktail
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