Subject: Market report
Your thoughts please.
Yeah… It’s been that long since our last market report that we may need to be re-introduced. My name is Jack, what’s yours? Well, it’s nice knowing you, or better yet nice doing business with you. We had a great turnout at the IFT in Vegas. It was great meeting some old and new faces.
I’m not sure anymore which is riskier… playing the Cashew market or sitting at the poker table till 4am. We all know RCN is expensive, which is the main factor for these high prices. Supply has shortened as well with yields down approximately 10%. So why has the market softened lately? Well, lots of RCN has arrived to the Vietnamese ports lately and many smaller processors with less fluid are desperate for cash. The larger processors with deep pockets may need to follow suit soon, but haven’t as of yet, at least not as much. So, we’re done? Not at all! What about quality? In a market as such of course quality will be affected, and is of course a significant factor in this market. In summary, market can go either way… fierce war has been declared between these 2 infamous rivalries, supply and demand. We suggest booking some of your needs for the next few months and leave some open for the market to do with it as it pleases.
Alright, some good news. Almonds are at a very comfortable level. You really can’t go wrong. The predictions are that we are headed into a beautiful large crop. What amazes me is as follows: The 2017 objective report is predicting a 5% increase over last year’s 2.14 billion lbs crop. Yet, almond growers will still find reason to hike their prices. They should keep the prices stable and sell out this huge crop. You can’t go wrong booking your needs for next 6 months or even most of the season.
We are seeing some more Walnut offers surfacing, mostly odds and ends, as everyone is clearing house in anticipation of the new crop right around the corner. They are predicting a pretty healthy crop and I don’t doubt they will sell out as they did this year. It would be smart to get a decent amount of your needs on the books.
After Brazil Nuts more than doubled in price back in March, they showed some signs of weakening recently, but I have a feeling it will be short lived. We need to make peace with it while taking advantage of any interesting deals out there.
Pumpkin Seeds has regained its dignity with an increase of about $0.20/lb over the last 2 months mainly due to a 30% loss of acreage being reported.
Tropicals have historically remained consistent. We are seeing some slight increases on Ginger and Kiwi now. There also has been some talk for a while now about Papaya shortages. Turkish Apricots have eased up mainly due to the Turkish lira weakening against the USD. Coconut market is dry, with most offers available only end of year. California Golden Raisins should be back in plentiful supply real soon as new crop approaches.
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