Banana Market Report sem. 19 2015

In view of rising supply levels, certain European markets have continued to weaken. After several weeks in shortfall, the combined Africa/French West Indies supply is returning to average levels, particularly because of the rise in African volumes (8% above average). Although on the up, the FWI supply is still slightly in shortfall. Furthermore, like last week, spot dollar banana availability has been high (production on the increase and FOB prices low in Ecuador, slowdown in demand on the East European markets), as have Dominican volumes (production peak). So this additional supply has disrupted certain European markets. In France in particular, the good sales dynamic, which previously helped the balance hold up, has slowed down more significantly (school holidays, numerous public holidays, milder temperatures), making these volumes a hindrance on a market already more abundantly supplied. In Italy, the more moderate supply has helped maintain a more positive trend.  Similarly, supply and demand have remained in step in Spain, though with a weakening trend. In Northern Europe, the impact of increasing spot availability seems to have been dampened by consumption maintaining a keen focus on the banana (little interest in seasonal fruits, temperatures still favourable). However, the pressure on the East European markets has been higher, leading to clearances of volumes observed on other European markets. In this context the fall in dollar banana prices has intensified, reaching levels below average for the season. However, prices for the Africa/FWI supply have maintained a good level.