In St. Petersburg, banana selling prices fluctuated between USD 20.71 and 21.85 per box CIF, depending on the brand, volume, quality, and packaging. Due to weak demand, the prices were lower than the previous week. In week 24, approximately 1.395 million boxes were discharged, and 1.540 million are expected for week 25.

The exchange rate was volatile. The official rate was 1 USD = 88.21 RUB. However, the exchange rate at local banks for purchasing U.S. currency was 1 USD = 91-93 RUB.

The U.S. has imposed new sanctions against Russia, immediately ending dollar and euro trading on Russia's leading financial platform, the Moscow Exchange (MOEX.MM). The exchange and the central bank issued statements within an hour of Washington's announcement of these sanctions on June 12, a public holiday in Russia. These sanctions aim to disrupt the flow of money and goods that sustain Russia's war in Ukraine.

The central bank stated, "The U.S.'s imposition of restrictive measures against the Moscow Exchange Group has resulted in the suspension of exchange trading and settlements of deliverable instruments in U.S. dollars and euros." This development means that banks, corporations, and investors will no longer be able to trade either currency through a central exchange, which typically offers liquidity, clearing, and oversight benefits.

The impact of these developments on the banana trade remains to be seen.

In the Mediterranean, Ecuadorean bananas were sold at CIF prices of USD 16.0-17.0 per box  while Central American fruit was priced around USD 2.0 less per box.

In the Mersin Free Zone, re-exported bananas of Ecuadorean origin were priced between USD 18.0 and 21.0 per box, depending on the brand, volume, quality, weight and packing. Boxes with higher weight fetched peak prices. These prices were higher compared to the previous week due to the lower volumes of bananas discharged in the Turkish transit port.

Bananas originating from countries other than Ecuador were sold at around USD 15.0-17.0 per box.

Like other Muslim countries, the Dhu Hijjah festivities might affect the banana trade in Mersin. According to the Islamic lunar calendar, Dhul Hijjah which  started on the evening of June 6, 2024, following the sighting of the crescent moon. The duration of Dhul Hijjah ranges from 29 to 30 days. During this period, Muslims undertake Hajj, a mandatory spiritual journey, at sacred sites in Saudi Arabia. Hajj starts on the eighth day of Dhul Hijjah and lasts for approximately five to six days, falling between June 14 and 19. In Turkey, the holiday period, initially set to begin on June 15 and end on June 19, will be extended by officials until June 21, resulting in nine days of holiday. Local traders suggest that discharging, customs operations in Mersin, and transportation may impact the banana industry during this period.

Muslims who cannot participate in the Hajj might observe fasting during the first nine days of Dhul Hijjah. The exchange rate was 1 USD=32.61 TL.

In the Iranian domestic market, prices were influenced by limited volumes due to reduced arrivals, a shortage of import licenses, and limited inventories in cold storage. The prices for Ecuadorean bananas hovered around 70,000-80,000 Toman per kg, while Indian bananas were priced around 65,000-72,000 Toman per kg. The 13.50 kg box of Indian bananas was priced at USD 9.0 per CIF Bandar Abbas.

However, banana consumption is expected to decrease due to the availability of higher quantities of local summer fruit in the market. The exchange rate during this period was 1 USD = 59,000-59,500 Toman.

Prices in the Ecuadorian spot market were lower than the previous week. This was due to a decrease in demand for fruit, particularly for shipments to Russia. Additionally, the delay of a vessel’s arrival to St. Petersburg until Sunday, the 15th, contributed to this decline. Consequently, several exporters only shipped the fruit under contract without additional spot requirements.

No fixtures were reported in the banana trade. A large vessel was chartered for a three-month Time Charter (T/C) period to replace one of the four vessels transporting bananas from Costa Rica to the West Mediterranean. This was done to substitute for a ship that was being drydocked.

A handful of vessels were chartered for the fish trade, and several were fixed with dry cargo for various destinations. The Time Charter rates varied depending on the trade type, whether a geographical or return voyage. The rates ranged from US Cents 60-65, going up to 70 per cbft per month for larger vessels, depending on the idle time between employments. The Time Charter rates for smaller vessels were almost at the same levels, around US Cents 60-65 per cbft per month.

Bunker Prices:

                                    VLSFO           MGO

Rotterdam                 $551.00          $743.00         

Gibraltar                    $601.00          $781.00                     

Panama Canal          $645.00          $774.00