GWM China Fruit Import Update: Cherries, Week 52/2015

The most notable highlight of week 52 was undoubtedly the arrival of the first larger vessel of cherries, this vessel had a significant impact on prices however the impact was rather short lived with price improving as volume was swiftly distributed (problem fruit was another story). Southern hemisphere products remain slow to start, however grapes from both Peru and South Africa have started to become more visible (export statistics show this too).

The first larger vessel carrying cherries arrived at the start of week 52, prices were impacted most notably in Guangzhou while Shanghai was impacted by increased air-freight arrivals at the same time period. Shanghai market overall outperformed Guangzhou, likely as supply was skewed towards the south. The most dominant sea-freight varieties were Royal Dawn followed by Santina and Bing. In week 53 the next large arrival will be received (Santa Ines) with most of the fruit expected to offload in the south of China. Santa Ines is carrying 3 times the volume the first larger vessel held, as a result it will definitely have a more marked impact on the market compared to the short-lived impact of the first vessel.

Overall quality of the larger volumes of sea-freight has been satisfactory, however there have been complaints of cracking on most of the Royal Dawn on offer. By the end of the week it was primarily the poor Royal Dawn that was carried forward day by day receiving little interest from buyers. Royal Dawn showing heavy cracking asked for a low of ¥300 (5kg, P), with no visible interest. As expected smaller sized cherries with similar issues were discounted more harshly. Prices in Guangzhou reached a low in the middle of week 52 as the volumes built-up and were in the process of being distributed. Royal Dawn showing good quality was asking between ¥390-430 (JD, 5kg) and receiving sound movement, as high quality Santina was in the range ¥500-530 (JD, 5kg). Although price then improved after volumes were cleared expectations of the next vessel started to impact the mood of buyers. Buyers (particularly in Guangzhou) were focusing more on Tuesday/Wednesday’s arrivals and using this to push sellers of the remaining stocks downwards.

Asking prices of high quality Santina and Bing in Shanghai on the weekend could find sales at between ¥550-580 (SJD, 5kg), with some edging price higher at ¥580-610 (SJD, 5kg). Guangzhou market was relatively in line with these prices on Saturday at ¥550-580 (SJD, 5kg) but decreased on Sunday with buyers preferring to wait. By Sunday Santina air-freight could be snapped up for between ¥500-520 (SJD, 5kg), however the quality was noted as being less favorable.

To the side the chilean air-freight fully updated till week 51 and partically updated till week 52. As is visible and as was previously mentioned volumes into Shanghai at the start of week 52 were large. Air-freight volumes to date are just over 1 million cartons up 14% year on year.

Image source: Pixabay