Europe Trend Week 04

European markets still affected by the general under-supply.

Incoming volumes have remained insufficient. On the one hand, the combined Africa/French West Indies supply has remained in shortfall (12% below 2-year average) because of the FWI supply shortage (65% below 2-year average) and barely average African volumes.
Most of all, incoming dollar banana shipments have remained in shortfall. Incoming Colombian shipments have remained well below average for the season (-18%), and the climate conditions have kept Ecuadorian exports at only average levels.
In addition, incoming volumes from Costa Rica have been smaller than in 2017 because of the cold temperatures and lack of sunlight (small-sized fruits). Finally, shipping delays from Central and Latin America have continued to intensify the under-supply phenomenon.
Furthermore, yellow banana sales have continued to rise more hesitantly in the South and East than in the North. Hence green banana prices on the spot market have continued to climb, intensifying the gap with contract prices and complicating the situation for certain importers severely short of fruits.
In Russia, the falling supply has helped prices climb, remaining at levels well above average. Finally in Spain, prices have stabilised at slightly below-average levels because of a large supply from the Canaries.