The price of the Ecuadorian Bananas are influenced by the spot pressure

As every year for this time, the pull and pull for the price of bananas between exporters and producers is the rule in the sector, although this year things change.

The price of the Ecuadorian Bananas are influenced by the spot pressure

Spot importers, who buy out of contract, have paid premiums in recent years, so they are promoting the signing of contracts that have as a condition the value imposed by the Government and that has been lower than the free market.

The value decreed by the Ministry of Agriculture – which will be paid by the exporters to the farmers – is $ 6.30 for 2019 and for these days it will be set for 2020.

This year, 100% exported 40% was exported under the spot mode, especially to markets such as China, Algeria, Russia, Eastern Europe, Turkey among others.

“Those markets, especially the Russian one, which is being ordered, will demand contracts by 2020,” Richard Salazar, administrator of the Banana Marketing and Export Association (Acorbanec), tells EXPRESS Daily. Something similar happens in China.

From January to August 2019, Ecuador has not been able to grow substantially in fruit exports, reaching 2.5% more in volume (4.6 million tons) and 3.4% in values ​​($ 2.2 billion), according with data from the Central Bank of Ecuador.

The growing importation of vegetative material (meristems in this case) makes it possible to foresee greater productivity in the farms next year.

“Russia in 2020 will try to buy most of the contracts. It is a country that has taken care of the market. This year so that the price does not fall, purchase volumes have fallen, ”says Salazar.

“2020 is going to be the year of the contracts,” he points out, but “it is important to define the price for 2020 as soon as possible in order to sign them” with foreign clients.

https://www.expreso.ec/economia/precíbanano-presion-spot-economia-NE3251971