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Chinese banana prices readjust as supply speed grows

foodmate 2019-03-21
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The banana supply from production areas in Guangdong and Guangxi has been small, so the market influence in this area is limited, and price fluctuations were not big. However, the same can not be said for banana production areas in Chinas southwest. At first, the price increase from last week continued into this week, but when the price reached a certain point, visiting traders began to lose their enthusiasm. They stepped back to see how the market would develop, and the price began to stabilize.

The price of medium-quality bananas also increased as the overall banana price increased. Now that the market is readjusting, the price of medium-quality bananas is the first to come down, and rapidly. The price of top-quality bananas is slower to readjust as supply is still limited and buyers compete to get their hands on top-quality bananas.

The overall price in banana production areas is still at a high level, and supply is still limited, in particular for top-quality bananas. Even though the price is readjusting, it is likely to remain in a high position for some time. Banana farmers are not likely to worry and flood the market with their stock. The banana supply will closely follow the time it takes for bananas to grow, as farmers will neither dump their stock nor hold it back. There will be some competition from other seasonal fruits in the market, but since banana supply is limited, the price is unlikely to drop.
 

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