Europe Trend Week 05


General under-supply persisting across Europe.

The overall supply has remained insufficient. Firstly, the combined Africa/French West Indies supply has remained stable and in shortfall (-18%): the shortage of FWI volumes (67% below average) is not being offset by the small African volumes (12 % below average). Despite Ivorian volumes being slightly above average, the Cameroonian supply is well into shortfall (22% below average). Secondly and most of all, dollar banana availability has remained limited. Despite increasing, Colombian volumes have maintained below-average levels (-11%).
In addition, whereas Costa Rican volumes have remained smaller than in 2017 because of the cold temperatures, the Ecuadorian supply has remained stable and below average for the season. Finally, shipping delays have continued to disrupt the supply. Furthermore, demand has continued to pick up in both Western and Eastern Europe, except in Italy.
However, green banana prices have continued to strengthen, though with yellow banana prices struggling to pick up in turn, the increase has nonetheless started to slow.
In Spain, prices have remained stable at below-average levels because of the ongoing heavy supply from the Canaries.
Finally, the Russian market has continued to improve because of a limited supply.