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Apple market cools down, and the trading enters its off-season

After May 1st, the apple trade in the production and sales areas was not as good as before. In the production areas, merchants who look for cold-storage goods to purchase decreased, and the overall sales speed slowed down. Some of the sellers have a rather relaxed attitude to sales. In the general production areas, like Mengyin in Shandong province, the actual transaction price slipped slightly. In the high-quality production areas such as Luochuan of Shaanxi, etc., the price of the mid-to-late apples also showed a trend of weakness. There are three reasons behind this:

1. As seasonal fresh fruit is increasingly on the market, the apple market goes into its off-season. The volume of loquat from the south, greenhouse-produced nectarines from the north, watermelon, cherry, and other fruits is increasing, and the variety of fruits on the market increases as well.

Every year when fresh fruits are listed, driven by consumer preference for fresh tasting produce, the sales volume is relatively good even if the price is high. The high prices also bring high profits, and fruit merchants would allocate a large part of their energy to purchasing seasonal fresh fruits. With the decline in the quality of inventory fruits and their short shelf life, their space is reduced on the shelf. The sales volume then further shrinks, and the sales of inventory apples enter the off-season.

2. Merchants tend to sell the fruits from their own sources, and their enthusiasm for transferring fruits is reduced. In the early stage, many merchants generally carried a large number of stockpiles in order to prevent the lack of follow-up supply and the effect on transactions. In the case of the current slowdown in the sales area, the enthusiasm of merchants to take goods and transfer goods from the place of origin has further declined. Most of them are absorbing the early preparation or self-inventory sources. Even if some merchants have the demand to transfer fruits, they are currently purchasing at a low price to avoid the possible risks of the market.

3. The seller's mentality has changed, and their enthusiasm for shipping has increased. First of all, fruit farmers started to be busy with thinning and bagging fruits after May 1st. They do not have more time to pay attention to the inventory in the storage. Their willingness to ship the fruits becomes stronger and stronger. Second, the overall quality of the fruit farmer's inventory is poor. As time passes by, the quality of the fruits in the storage will continue to decline. The fruit farmers must sell them before they have major problems with quality.

For inventory merchants, they were basically losing money two years ago. This year, they basically have not lost money, yet, especially with the goods acquired in the early stages, which basically have a certain profit. After May 1st, some merchants changed their mentality of gambling in the later stage, and their overall enthusiasm for shipments increased.

In general, the pressure of competition in the market has increased with the launching of a large volume of seasonal fruit, and the transaction of stock apples is about to enter the off-season. The short-term market is affected significantly by changes in the mentality of buyers and sellers. However, in the current situation of low inventory, the price is unlikely to experience a sharp reduction. The mainstream market also needs to look at the absorption rate of the late fruits. If that lives up to expectations, the market of the future will not be too pessimistic.

Source: Zhongguo

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