Banana Market Report week 21 2015

Decent recovery on the European banana market! An overall fall in volumes has helped restore a better market balance. The combined Africa/French West Indies supply has registered levels in shortfall (7% below average), in particular because of falling African shipments, with disruptions by logistical delays. The dollar banana supply also seems to have been more limited (fall in Colombian volumes), and the availability of spot volumes from Ecuador in North European ports has been lower. Furthermore, in France and Northern Europe, local demand has recovered decent vitality for the season, because of temperatures remaining cool and still very limited fruit competition on supermarket shelves. Hence the upturn in demand from East European markets has helped get sales moving, and limit the build-up of stocks. In this context prices have remained stable for African/FWI sources, while an increase has been observed for the dollar banana, back to above-average levels for the season. Similarly after several weeks of idling, livelier demand on the Russian market has helped revitalise its commercial activity. Unlike previously at this time of year, CIF prices have remained stable and high. The only cloud on the scene, the weakening of the Spanish market has intensified because of heavy incoming shipments for this time of year, alongside demand slowed down by rising temperatures.