By Will Cavan
Executive Director
International Mango Organization (IMO)
Vista, California
August 24, 2011
Demand for limited supplies of Brazil first exports are selling out quickly and there is a projected shipping gap in September that should work to importer's advantage in driving prices up.
Recent imports into the European market were sold immediately as the market is looking for the sizing of smaller fruit that Tommy Atkins provide.
One European importer was quoted as saying: "Same here. Got my arrival on Friday - by Tuesday all was gone."
The same was true for another importer in Europe who is expecting a three week gap in supplies: "yes, but new arrivals are estimated only in 3 weeks."
As a result, the European market for Tommy Atkins from Brazil is trading up from 4 euros to a top of 6 euros with demand exceeding supply.
In the USA the same is true as Mexican larger count fruit is stuck in the $4.00 FOB range with Brazil Tommy Atkins selling out at a premium in the $7.00 range.
The next arrivals from Brazil are still over a week off with approximately 80 containers on board the vessel. After that, there is a projected gap in September from Brazil.
With strong domestic market demand in Brazil, farmers can sell production at the farm gate for cash as opposed to the added costs of exports and the lag in payment.
To make matters worse for exporters, the local currency is trading at an all time high against the USA dollar, making the return to shipper even less appealing.
