By Mark Greenberg
20% increase in Chilean clementines and mandarins to US
Clementines:
Through Week 32, Chilean exporters had loaded almost 33 000 metric tons of
clementines and mandarins to the US representing an increase of almost 20% through the same period last year. East coast loadings are up 46% over last year while west coast loadings are down by 13.3%.
Through Week 33, clementine prices on the east coast continued to show softness with selling prices for 10 x 3 lbs bags of US$ 24-26 for sizes 3 and larger, US$ 22-24 for size 4 and US$ 20-22 for size 5. West coast value-added prices are running at similar levels.
But the worst weeks of this difficult clementine season appear to be over and market
conditions have slowly begun to improve. Chilean clementine arrivals have declined and South African clementine arrivals are done for the season. Peruvian W. Murcotts are available but the Chilean late mandarin harvest is just underway and noteworthy
volumes will not likely be seen in the US until Week 35. All of this coincides with the
end of the North American holiday season and the return to school, factors that will
serve to boost citrus consumption as we move into September.
Many receivers will be cleaning up their clementine stocks in Weeks 34 and 35. But by Week 36 expect to see a healthier soft citrus market with prices that reflect
increased chain store demand and more manageable inventories. This should bode well for the W. Murcotts and other late mandarins.
Navel Oranges:
Chilean shippers loaded an especially heavy volume of navel oranges to the US in Weeks 31 and 32 with the aim of getting this fruit into the market prior to the September 1 start of the USDA/AMS Marketing Order for Oranges. The Marketing Order prescribes a mandatory sugar:acid ratio for all imported oranges seeking entry into the US from September 1 through June 30, each year. We expect to see some respite in Chilean navel orange loadings in Week 33 and then a resumption of heavy loadings in Week 34 and onward to the end of the season.
Through Week 32, Chilean exporters had loaded 31 854 metric tons of navel oranges to the US (equivalent to over 2.1 million 15 kg cases). This is almost 49% more than last season over the same period. Loadings to the east coast are up by 66% over last season and loadings to the west coast are up almost 49%.
For its part, South Africa has already landed 1.3 million cases of navel oranges in the
US with 600 000 cases more to arrive (a 15% increase over last season). Australian
navel orange arrivals are also up from last season by as much as 300 000 cases.
In addition to this greater supply of imported navel oranges, California shippers have
carried what had been thought to be a freeze-shortened crop right through July and
into August.
With that backdrop it should come as no surprise that the navel orange market has
continued to show a general price level that is at least US$ 2 down from the levels
traditionally seen in late-August. Industry-wide stocks are high and chain store
interest in navel oranges is only now waking up.
Through Week 33 on the east coast, where the market is shared by South Africa and
Chile, 48’s and 56’s are selling at US$ 20-22, 64`s are mostly at US$ 20 and 72`s and 88’s are at US$ 16-18. That said, there are lower prices being offered in the market.
On the west coast, where the navel market is shared by Chile and Australia, 40’s and
48’s are selling at US$ 18-22, 56’s at US$ 20-22 and 72’s and 88’s at US$ 18-20.
West coast demand for 88’s and 113’s has picked up as California is running short on
small Valencias.
With the deluge of Chilean arrivals set to hit in the last week of August resulting in
continued heavy stocks, we expect to see the general price level of navel oranges
continue at these levels for the next three weeks or so as sellers try to bring
inventories into line. But anticipated increased product demand as we move into
September, spurred on by cooler weather and back-to-school promotions, should result in a strengthening of the price levels as we move toward the end of September.
Minneolas:
In this very amply supplied citrus market it would be naïve to think that Minneolas
could go unscathed. They have not. Peruvian exporters have shipped almost 7 200
metric tons of Minneolas to North America. This is a substantial volume of fruit that
has landed into the hands of many receivers in a very crowded citrus market. In
addition, this season`s Minneolas have required heavier than normal de-greening which, in conjunction with the cold transit temperatures, has created some rind-breakdown issues apparent in almost all labels.
Minneolas are selling, slowly, at US$ 12-13. A firmer Minneola market will not likely
come about until all inventories (navels and Minneolas) come into line. Some of the
fruit may not be able to wait.