Sultanas: Contract offers until end of 2017

November 18, 2016 at 1:30 PM , Der AUDITOR
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MANISA. Several Turkish sultana suppliers are trying their hand at long-term customer retention, and are providing the opportunity of contracts ranging to the end of 2017.

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

Attached Files

File icon
raisins, sultanas, grade A, type 9, STD, 4.1-1.8
File icon
sultanas, grade A, type 9, STD, 2,21 - 1

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