Pistachios: bizarre export prices
June 3, 2020 at 1:09 PM ,
Der AUDITOR
Warehouse supplies exceed 120,000 metric tonnes
Market players estimate that Iran’s warehouse supplies exceeded 120,000 metric tonnes in May, a volume not witnessed in decades. Problem is that the farmers deliberately decided to store large volumes after the harvest in October. Their intention was to gradually make these volumes available to the market in a bid to maintain high export prices. In the Kerman province alone, as much as USD 1.7 billion are normally generated in pistachio exports. This stance, however, backfired with the coronavirus crisis, which has stalled exports and has prompted a decline in domestic consumption.
The situation is so bad that some pistachio harvesting terminals have been shut down in Kerman and workers have been laid off. In addition, the large volumes stored in the warehouses are now subject to an increased risk of Indian meal moth infestations and a loss in quality. Farmers are also confronted with high storage costs. Traders, however, state that the most worrying problem is the lack of liquidity on the farmers’ side. At present, the farmers cannot afford the pesticides and fertilizers required for the cultivation of the new crop. Market players are worried that Iran may lose valuable market shares in India and in China. Hopes are that negotiations may start with China, which is the most important export destination.
Subborn refusal to go down in price
Given the current market situation it appears bizarre that the export prices have remained firm over the last two weeks. Farmers and trader are currently refusing to go down in price as they are desperately trying to sell at what they regard as economically viable prices. They will, however, be forced to go down in price in August at the very latest as soon as the warehouses will need to be cleared for the new crop. Harvesting starts in September. In Europe, raw Akbari pistachios from Iran, 22/24 NO, are currently trading at EUR 7.70 per kg FCA Spain and raw Ahmad Aghaie pistachios from Iran, 28/30 at EUR 6.06 per kg FCA Spain.
|
Pistachios, Iran |
|
|
Type |
EUR/kg |
|
Ahmad Aghaei, 22-24 |
6.95 |
|
Ahmad Aghaei, 24-26 |
6.69 |
|
Akbari, 20-22 |
7.29 |
|
Akbari, 22-24 |
7.02 |
|
Kale Ghuchi, 22-24 |
6.82 |
|
Kale Ghucci, 24-26 |
6.62 |
|
Fandoghi, 30-32 |
6.15 |
|
Fandoghi, 32-34 |
5.95 |
|
FOB Iran |
|
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