Sultanas: War in Ukraine dampens trading

Date: 21st June 2022 Category: Latest News
Sultanas: War in Ukraine dampens trading

After two weeks of precipitation and cool temperatures, the weather in the Turkish growing areas became warmer. Market players report many uncertainty factors that will likely affect the coming season. Meanwhile, the war between Russia and Ukraine is having a noticeable impact on Iranian exports.


Crop prospects remain optimistic.

Heavy rain showers and hailstorms caused problems for the growing regions in Turkey, and crop damage could not be ruled out. In the past few days, the weather has become much warmer and drier, with temperatures only remaining comparatively low at night. There were also some hailstorms again. According to market players, however, the vines are currently making a good impression and the rainfall of the last few weeks is unlikely to have caused any lasting damage.

Trading activity remains low for prompt shipments, but weekly export volumes are still well above last year's levels, largely due to long-term contracts. Last week, 5,663 mt of sultanas and raisins were shipped overseas, compared to only 4,059 mt in the same week last year. In total, 205,806 mt have been exported since the beginning of the season, which is an increase of more than 20,000 mt compared to the same period last year. (Mundus-Agri)


Prices with question marks

Prices on the Izmir Commodity Exchange have stabilised at their level of TRY 17/kg, with virtually no trading taking place there at the moment. 

There are still too many uncertainties about this year's production and price-driving factors. Therefore, traders are still holding back with offers, and buyers are also delaying inquiries as far as possible.  Production has been estimated at at least 300,000 mt of sultanas, but the actual result will only be known after drying. High fertiliser and pesticide costs are also likely to affect prices. (Mundus-Agri) 

Iranian exports suffer massively

Iranian raisin exports have shrunk noticeably in the first five months of this calendar year. Initially, the drought had massively reduced the availability of sufficient export-quality goods. The war between Russia and Ukraine, which has been going on since the end of February, is further limiting Iranian raisin exports. The CIS countries are among the most important customers for Iranian suppliers, first and foremost Russia and Ukraine. As a result of the war, demand from these countries for Iranian raisins has plummeted.

Between January and May 2021, 92,331 mt of sultanas worth USD 124.27 million were shipped overseas. In the same period in 2022, exports reached only 41,194 mt, and the export value has also dropped to USD 54.98 million. Specifically, 21,987 mt of sultanas, 15,682 mt of golden raisins, 1,843 mt of green raisins, 742 mt of sundried raisins and 283 mt of currants were exported.

Prices have risen in recent weeks due to tight availability at origin, but the weaker Iranian rial has absorbed most of this difference for foreign buyers. (Mundus-Agri)