Turkish Apricot Update 06/12/2022
Strong November Shipments;
Exports in November were 9,181 tons compared to 8,795 tons last year Exports year to date are 31,892 tons compared to 37,470 tons last year
Exports in November were ahead of expectations, increasing 4% despite significantly higher prices than in November 2021.
Whereas retailers have mainly booked through summer 2023, packers and importers, continue to buy hand to mouth, hoping the prices and or the Lira weaken. We believe they have little cover past December shipments. There is a lot of buying to be done.
The Lira, $ exchange rate, is 18.64 to the $, barely changed for the past 4 months, despite 85% inflation. Minimum wages are currently being negotiated for 2023. If they are increased according to the inflation rate as expected without depreciation of the Lira, packer's costs will increase significantly in January in $ terms.
Container availability has improved though freight rates are still high.
The apricot prices have drifted lower over the past 2 weeks on slowing demand, possibly teeing up a buying opportunity for first-quarter 2023 shipments.