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Dried apricots: market governed by uncertainty

June 9, 2020 at 10:23 AM , Der AUDITOR

MALATYA. Harvesting is underway in some parts of Turkey. Dried apricot production is to start soon. Market players still disagree over the size of production.

Disagreement over production

Dried apricot production is to start in seven to ten days in Malatya. Production normally lasts until the end of August. Official production estimates have still not been issued and estimates currently range in a wide gap of 80,000-120,000 metric tonnes. A difference of 40,000 metric tonnes, however, has a large impact on prices. Estimates rangeing as low as 70,000-80,000 metric tonnes have recently also given rise to discussion. The picture is far from clear as to what to expect in the new season. Market players so far only agree on the good quality of the fruit. Provided that there are no excessive rains, which could prolong the drying, the quality should remain promising. A high proportion of large fruits is, in addition, to be expected due to the smaller number of fruit sets.

Exchange rate fluctuations cause problems

The volatility of the Turkish lira in recent months has prompted additional uncertainty. Problem is that prices have differed by as much as USD 400 per metric tonne within only one month, a situation that spells disaster for many market players. Nominal rises are currently to be observed in the export market.

Dried apricots, Turkey
Size	USD/mt	EUR/mt
No 2	3,250	2,879
No 4	2,950	2,613
No 6	2,800	2,480
No 8	2,400	2,126
FOB Mersin, 2,000 ppm

Limited carry-over stocks expected

Turkey has shipped 88,374 metric tonnes of dried apricots and dried apricot products overseas since the beginning of the season, nearly 3,000 metric tonnes less than one year ago. Domestic consumption ranges at 10,000 metric tonnes. Exports may climb to 100,000 metric tonnes by the end of the season. Carry-over supplies are, therefore, expected to be limited. Last week, 1,028 metric tonnes were shipped overseas, more than twice as much as in the same period last year. This rise is mainly attriubuted to the celebrations marking the end of Ramadan.

Dried apricot exports in mt
Type	2019/20	2018/19
Whole	75,449	75,340
Industrial	6,996	9,639
Diced	5,929	6,261
Total	88,374	91,240
Since the start of the season

View more information
- price chart, apricots, dried, sulphured, no 2
- price chart, apricots, dried, sulphured, no 4
- price chart, apricots, dried, diced, 5 x 8 mm
- more price charts

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price chart apricots dried no 2 Turkey

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price chart apricots dried no 4 Turkey

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What are incoterms?

Incoterms are internationally recognized trade clauses that facilitate the trade in goods with the help of standardized contract formulas. They regulate the distribution of costs and obligations and thus prevent misunderstandings and disputes. They must always be agreed by both contracting parties and confirmed by signing the contract.

Overview of the incoterms

Please note that this is only a rough overview of the Incoterms. For a comprehensive description of the Incoterms, please visit the website of the International Chamber of Commerce.

EXW - Ex-Works (ex works)
The seller must ensure access to the goods at another named location (e.g. factory, factory, warehouse, etc.). The buyer organizes the loading and the transport and bears the costs and risks.

FCA – Free Carrier (free carrier)
The seller must deliver the goods to the buyer's carrier at a location specified by the buyer (for shipping or collection). The seller also undertakes the export customs declaration. The buyer assumes the risk from the moment the goods are handed over to the carrier.

FOB – Free on Board (free on board)
The seller assumes all costs and risks until the goods have been loaded onto the ship. The seller is also responsible for export clearance. The buyer takes responsibility as soon as the goods are on board.

CIF – Cost, Insurance And Freight (Costs, insurance and freight to the port of destination)
The seller assumes all costs and risks until the goods have been loaded onto the ship. The seller bears the costs for packaging and postage for export. The seller also takes out insurance against the buyer's risk of losing or damaging the goods during carriage.

DAP – Delivered At Place (delivered named place)
The seller assumes the costs and risks for the transport of goods to an agreed address.

DAT - Delivered at Terminal (delivered terminal)
The seller must make the goods cleared for import available to the buyer at the terminal of the named port of destination at the agreed time.

CPT – Carriage Paid To (freight paid by)
The seller must make the goods cleared for import available to the buyer at the terminal of the named port of destination at the agreed time.

DDP – Delivered Duty Paid (duty paid free)
The seller delivers the goods to a destination at his own risk and expense. He takes care of all the formalities and bears all costs and import duties.

CFR – Cost and Freight (cost and freight)
The seller assumes all costs and risks until the goods have been loaded onto the ship. The seller has to conclude the transport contract and bears the costs and freight for transporting the goods to the named port of destination or import terminal

CIP – Carriage And Insurance Paid To (freight and insurance paid by)
The seller delivers the goods to the carrier or another person named by the seller to an agreed location. The seller bears the costs and risks for the transport to the specified destination, as well as for the freight insurance. The buyer regulates the import handling and import taxation.

FAS – Free Alongside Ship (free alongside ship)
The seller delivers the goods to the carrier or another person named by the seller to an agreed location. The seller bears the costs and risks for the transport to the specified destination, as well as for the freight insurance. The buyer regulates the import handling and import taxation.

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Apricots, dried, diced, 8 x 8 mm

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What are incoterms?

Overview of the incoterms