South African Orange Prices Expected to Fall Due to New EU Cold Treatment Requirements

South African Valencia & Late Navel oranges for week 28 were trading at USD 14.00/15kg carton for count 72-88 and USD 13.00/15kg carton for count 105. Normal navel oranges were trading at USD 13.40/15kg carton for count 72-88. Indicative pricing received from the Saudi Arabia market is between USD 12.50-13.00 for these varieties. Suppliers predict a drop in price for the Middle-East market in the coming weeks as suppliers and producers divert oranges destined for the EU market to the Middle-East. The primary reason for the diversion is the new cold treatment regulations imposed by the EU on South African oranges. Furthermore, suppliers predict strong volumes of oranges as the later varieties come into season which could put additional downward pressure on prices.