REMA FOODS MARKET FLASH July 22, 2013
Based on customer feedback, starting this week the Rema Market Flash is returning to the model of frequent short reports on the week’s highlights. Expect the straight news direct from our buyers on the week’s major occurrences in the import market.
TRADE: On July 9, 2013, U.S. Customs began implementation of Importer Security Filing (ISF or 10+2) enforcement. Importers may now see penalties of up to USD 5,000 for each instance of incorrect, incomplete or untimely filing.
CURRENCY: Euro/dollar at 1.316, after bouncing around in the 1.29-1.32 range for the past couple of weeks. Note the 52 week high for the dollar was 1.209; the low 1.344.
PEACHES: Coming off a short crop last season in the USA, the market remains tight. The latest California League of Food Processors’ crop estimate for 2013 is 380,917 tons, compared with 367,956 tons last year. Hot weather has farmers concerned about fruit sizing. In Greece, severe hailstorms destroyed a good part of the crop; minimal exports are expected. China still offers hope for the US market. While some packers report the crop volume is down 40%, the USDA forecasted only a 4% drop for China – the final figure may be somewhere in between. Quality packers in China however realize they’re the main players that can make up for shortages in the rest of the world, and pricing for high quality third-party audited fruit is firm as a result.
PEARS: In China frost during the flowering season has caused a steep reduction in crop expectation, possibly by as much as 50%. The season doesn’t start until end August.
TUNA: After falling the past few weeks, skipjack raw material costs have stabilized at $1900/mton. The FAD (fish aggregating device) fishing ban started July 1st and seemed to be instrumental in stemming the decline, but so far has not pushed pricing up. Yellowfin catch is good and market is following skipjack. After falling steeply at the end of 2012, Albacore has remained relatively stable for the past few months and is currently trading at $2700/mton.
PEPPERS: The start of the Spanish pepper crop is over a month late, yet farmers still expect the overall volume to approach that of last year. In Peru, the crop is predicted to be normal and it seems more packers are entering the market this year. In Turkey, the crop was affected by rain; much of the raw material will go to pepper paste production. Costs in local currency are expected to run 10% higher this year, but the devaluation of the Turkish Lira may negate the increase in dollar terms.