Demand in many northern hemisphere apple markets finished 2003 in a strong position, reports the February issue of the World Apple Report.
According to the report, stock levels of fresh apples are at near historic lows and the scene is set for this 2003-04 northern hemisphere season to be "one of the most successful since the Asian crisis hit in 1997."
However, the report, published by Belrose Inc in Washington state, also outlines the impact that currency volatility is having on the trade. It warns that speculation has driven the dollar’s slide against the euro rather than economic factors and so the market may be headed now for rapid sell off over the coming months and so currency volatility will last until mid-year.
Currency futures may also have more of a role to play.
"As individual traders become larger and the dollar amounts at risk become larger the option of currency hedging may need to be scrutinised more carefully," concludes the report.
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