Market Report August 2019

The Market in General

The northern hemisphere benefits from an overall good harvest season so far. The El Niño warning for Southeast Asia has been cancelled; the monsoons have arrived late, but are delivering sufficient rain. Political and economic uncertainties are causing world markets to act cautious and focus short-term.

Market Info and Recommendations

Tuna: After four months of declining prices, reaching an extreme low of USD 1,000/t in Bangkok end of June, the market has turned upwards towards USD 1,200/t. Both the current fishing veda (catch restrictions) in the Eastern Pacific, which expires October 8th, and the FAD ban in the Western Pacific, which terminates end of October, are currently limiting fish supplies. Despite the high levels of stocks, prices remain presently favourable! We urgently recommend covering your requirements till far into the coming year. FAD-free tuna under EU preferential system origins remains limited. This also applies to MSC. The free trade agreement between Vietnam and the EU was signed late June, but will only take effect early 2020. This agreement will permit entry of a dutyfree tuna amount of 11,500 tons, once effective.

Pineapple: After a poor summer harvest, all factories in Thailand closed early. Despite plentiful water supplies the winter harvest is not expected to reverse the trend. The harvest forecast indicate yields of only 1,200,000 t of raw fruit, which equates to only 2/3 of the ten year average. The drought in Kenya makes the situation even more difficult. Demand is largely covered with very favourable long-term contracts dating back to 2018. However, as soon as these contracts expire, market prices shall surge to much higher levels. We recommend considering long-term forward contracts with us. Organic pineapple from Sri Lanka is also quoting firmer. We remain ready to take your orders.

Peaches: The severe weather in Greece also affected the peach region. Packers have either pulled back offers or increased their initial quotes. We recommend adjusting your requirements now.

Apricots, dried: The current harvest in Turkey is yielding good quality, however due to the late frost in April yields will be reduced. The market is becoming more buoyant. The trend will continue after the Feast of Sacrifice; afterwards factories will boost their production. We stock all cuts, including organic quality. Our experienced QC-team in Izmir is observing the market closely. We recommend covering your requirements now !

Tomato Products: The market has turned from a sideways to an upwards trend. This year producers had to increase their prices and keep this higher price levels. The harvest in Southern Europe has just started. In Italy yields are expected to be lower due to weather conditions. Weather in the comings weeks will be decisive ! Our experts are now travelling through the origins to witness the crop. Dried tomatoes in Turkey are now being harvested in all growing areas. The dry weather conditions will hopefully continue till the end of August. Prices are at 2018 level, however as the Turkish Lira is currently stable, the exchange rate cannot compensate the high inflation rate. We also recommend to cover your demand now.

Peppers/Peperoni: Harvest started well in Turkey. Bell-pepper (Topa) as planned, however the price for capia is unexpectedly high. The situation for the second and hopefully third picking of Lombardi peperoni looks better. These strong price increases, which also cannot be compensated by exchange rate advantages, are depressing the market. Our experienced team in Izmir is on the ball. Please contact our account manager for more details!

Coconut Milk: There are still no signs of a recovery. Prices remain at very favourable levels. Once again, we recommend covering requirements in the long-term.

Bamboo: Late and thusly short harvest in China with approx. 25% price increases for the raw product. Despite weak demand from the USA supplies are at last year’s levels. We recommend ordering now!

Capers: We recently visited our partners in Morocco (approx. 60% of global production). A very cool and dry July has resulted in only half of the normal raw product yields. Factories are in “wait-and-see” mode. Robust quotations are not expected before early September. In Turkey (raw product originating in Kirgizstan, Turkmenistan and Uzbekistan) prices are also rising due to tight supplies. Please note the newsletter!

Sesame Paste/Tahini: Stable, firm price level meets strong demand and difficult raw product supplies from Africa. We are ready to take your orders – also for organic qualities.

Chickpeas, dried: Low yields from the current harvest in Turkey reported. The market is expected to surge. We recommend covering needs now.

Lentils, dried: Poor harvest in Turkey, however Canada remains favourable. The market will turn, therefore we recommend to cover your demand now.

Quinoa: The good harvests in Peru and Bolivia have led to a correction on the market. Some prices have slipped considerably. We believe prices have hit rock bottom. In view of the ongoing strong global demand, we also recommend covering annual requirements now.

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Issued: 16 August 2019

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Info Capers, caper fruit and caper paste

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