Frost damage causes concern for the apple juice industry
As the industry shifted its focus to the new crop, growing conditions for the next apple season in Poland were initially favorable, with fruit maturation occurring three weeks earlier than usual. However, a cold snap between April 20-23 significantly affected the orchards. This freeze occurred while the apple trees were still in bloom, and despite strong flowering, the frost caused damage across all apple varieties.
Following the freeze event in April, Poland experienced a second cold wave in May, accompanied by hailstorms in the latter half of the month. While it is difficult to assess the full extent of the damage, market players estimate the crop yield will be no more than 3 million tons, significantly lower than the anticipated 5 million tons. Consequently, apple juice concentrate production is expected to be around 200,000 MT for 2024/25 MY, down from the 2023/24 MY which was 265,000 MT.
The apple crop in Turkey in the 2024/25 MY is also expected to be smaller year-over-year by at least 15%, according to market sources. This decrease is attributed to heavy rainfall and lower yields following three years of high yields, with one market player noting that “the trees are tired.” Demand for Turkish apple concentrate has been strong from US buyers in recent months.
The European apple juice market has seen limited trading activity since the beginning of 2024, with little demand from European buyers. This trend is typical for this time of the year, as buyers await the new crop. Most trade has been through the fulfillment of existing contracts.
Trading slows but almond prices remain firm
Prices were firm in the US almond markets, but trading was reported to have slowed significantly compared to previous weeks on June 27th. Standard 5% almonds continued to trade in a similar band to last week and the assessment was made at $1.90/lb, up 1 cent/lb on the week and in line with the last reported trade.
“There has been a major slowdown this week; buyers seem to have covered all they need for immediate needs. At the same time sellers don’t have much product left so prices are staying relatively firm,” a European trader disclosed to Expana.
Market participants suggested that this trend would continue until the release of the USDA Objective Almond Measurement on July 10th with one seller saying, “Buyers are hoping for a big production figure for the objective to allow pushing down pricing. Most buyers seem to have immediate cover and are looking at Q4 shipments. I’m expecting everything to be quiet until the release.”
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Written by Nick Wood
