The citrus market in Russia started picking up last week, with the exception of lemons, where demand is down due to higher prices. There are currently enough lemons on the market and many are waiting for the return of Turkish lemons on the market, which is expected to resume next week, before making any purchases.
Demand for oranges has increased now that children have gone back to school and most people have returned from their holidays. Oranges are a popular fruit for school cafeterias and also for snacks during break times. Demand will increase even more once the weather cools down in September.
Prices are expected to continue rising on the back of a short supply from South Africa. Volumes will be limited and are expected to end one month earlier than usual. Supply from South Africa usually continues through to week 42, but there are doubts this year that they will even get supply in week 37. As a result, Russian importers are looking to other markets such as Uraguay to fill the gap through to week 39/40, but they have nowhere near the same volumes as South Africa. This situation will most likely cause a shortage in November right up until the start of the Egyptian season.
Despite the expectation that Turkish lemon imports will resume, it is still unclear if Turkey will be allowed to supply mandarins and grapefruit to Russia this season.
"We expect a good and stable supply market for mandarins once Argentina starts supplying. However, they had big hail storms a week ago and now many producers are afraid to send to Russia because there is a possibility of them developing quality issues during transport." according to a major Russian importer.
"We are expecting a big mandarin shortage in October if Turkey is not allowed to enter the market. It has been a very unusual citrus season this year to say the least; especially for oranges, grapefruit and mandarins."
On the Russian market, Argentinian mandarins, Nadercotts and Morecotts are currently selling at $14.50 per box, mandarins from Peru tend to be a bit more expensive because they are better quality, at $16.50-17 for a 10kg box. Lemon prices are decreasing - the average market price is $36 per 18kg. Orange prices have been fluctuating as importers are trying to increase prices, which are currently ranging between $12.15-$16.41 depending on size, quality and variety.
