Why have fruit prices risen so sharply? The latest prices of apple and red date futures

Have you noticed that this year's fruit prices are higher than in previous years, especially the current price of red dates? Why is that?

From mid-May 2019 to now, whether in the investment market or the retail market, fruit prices have been rising across the board. In the short term, today's heavy rain and extreme weather have raised the transportation costs of fruit; in the medium to long term, climate anomalies have occurred in many parts of the world, and the prices of some imported fruits are also rising, which has also pushed up fruit prices.

The continuous rise in fruit prices is a good investment opportunity for futures investors and A-share investors. As the performance of listed companies that grow fruit is expected to rise, on May 29, Dunhuang Seed (7.000, 0.64, 10.06%) hit the daily limit, Guannong Shares (6.210, 0.03, 0.49%) surged 3.87%, and Xiangli Shares (12.130, 0.13, 1.08%) rose 2.04%. This brought substantial returns to futures investors and A-share investors.

Retail side: fruit priced below 5 yuan per jin is extremely rare

Due to weather problems, transportation costs have risen greatly, which has pushed fruit prices higher. A survey by Guangzhou Daily of markets in Zhujiang New Town in Tianhe District, Binjiang East Road in Haizhu District and other areas found that fruit priced below 5 yuan/jin has become extremely rare.

The prices of common fruits such as apples, watermelons and lychees have risen significantly compared with previous years. The price increase for imported fruits is even more astonishing; the retail price of durian is now 18-32 yuan/jin, more than 50% more expensive than last year. At present, the prices of apples and watermelons are still rising.

Outlook: weather may push up the prices of some fruits

Weather is the main reason for the recent rise in apple prices. Whether abroad or domestically, many fruit-growing regions have experienced extreme weather one after another. In China's Shaanxi, Shanxi, Shandong and other places, cold weather during the fruit flowering period caused a sharp reduction in apple production, a smaller market supply, and lower inventories. These areas are also the main producing regions for red dates, so the red date market has also been affected.

Weather has reduced fruit production and also greatly increased transportation costs. With recent heavy rain, the frequency of restocking has slowed noticeably by 1-2 days. During transport, fruit can face problems such as backlogs, damage and related cost increases. In response, agricultural product research experts from Huatai Futures and China International Futures believe that fruit market prices will remain high for a fairly long period, and a small number of products still have room for further price increases.

Market: red date futures rose 30.6% within the month

Red date futures rose 30.6% within the month. For futures investors and A-share investors, this means profit opportunities have quietly arrived, and fruit is no exception. In today's futures market, the most eye-catching are apples and red dates. In May 2019, the price of the main apple futures contract was 10,190 yuan/ton, a new high since listing, with a gain of nearly 20% in May alone. The main red date futures contract listed in May also showed a “soaring” trend, currently reaching 10,935 yuan/ton, with a gain of as much as 30.6%.

Rising fruit prices are very bad news for consumers, and apples and red dates are two very popular fruits. Now that their prices have risen so much, will you still buy them?