Sultanas: Contract offers until end of 2017
November 18, 2016 at 1:30 PM ,
Der AUDITOR
Of course, these contracts contain particular conditions. Firstly, there must be sufficient produce available on the market. To ensure this, the supplier wants an advance payment in order to build up according stocks beforehand. In addition to that, the price is significantly above the current level. Turkish sultanas, type 9, for prompt delivery are currently at 1,325 USD/mt, for contracts with “extended length”, the price is at 1,450 USD/mt FOB Izmir.
Farmers have no alternative
By now, farmers are submitting themselves to the buyers and accepting the current raw sultana price of 3.10—3.50 TRY/kg. Contrary to the threats at the beginning of the season, many have been selling their produce to traders on commission basis since they lack the necessary storage capacities.
The momentary comparatively low price level is driving exports. Since beginning of the season, 76,716 mt of sultanas were exported abroad – an increase of 44%, compared to last year. Traders expect the current price levels to be held without greater fluctuations until approximately March 2017. Naturally, one variable in this forecast is the exchange rate.
export sultanas in mt |
|||
season |
mt |
Ø USD |
Ø EUR |
2016/17 |
76,716 |
1,625 |
1,514 |
2015/16 |
53,216 |
2,096 |
1,953 |
01.09.-12.11.16 |
Quality check
Predominantly, type 8 and type 9 qualities are available on the Turkish sultana market. The lighter type 10 is a scarce good due to rainfall during the drying phase. The market shows surprise mainly at the good quality of organic sultanas. Despite the high yield, the grapes also turned out very large. Raw sultana prices are at 3.50-4.00 TRY/kg. Traders believe that a price increase of 50-100 USD/mt for organic sultanas is possible in the course of the season.
sultanas, Turkey |
||
type |
USD/mt |
EUR/mt |
grade A, type 8, STD |
1,300 |
1,211 |
grade A, type 9, STD |
1,325 |
1,235 |
grade A, type 10, STD |
1,500 |
1,398 |
organic, grade A, Type 9 |
2,100 |
1,957 |
FOB Izmir |