It turned out that the showers in Eastern Europe, as mentioned in our last report, finally leaded to the physical start of the 2020 season. The collection process of raw material is now running at full steam, but the receipt and especially the drying of decent quantities in a short timeframe seems to be a challenge for most factories. Given the traditional peak in exports during October and November, it can be advised to pay extra attention to humidity levels before arrival. Price wise the market in Eastern Europe remains quite stable, although the local price for raw material remains very blurred and volatile, both ways. The harvest in California is running in full swing as well. The early start of the crop is reflected in the September receipts, which were 84% up compared to the same period last year. Next to the early start of harvest, these figures support the indications of a record crop. Overall the market for US material seems rather stable, as low pricing is triggering buyers to lock in their needs and support increasing consumption, helping to move out the forecasted record crop without pushing prices to ground floor level again.
