Thursday, February 27, 2014


Market remains unchanged... meaning that pricing is high, and doesn't seem to be coming down any time soon.  
And then, there is the drought

The Market has been very quiet the last few weeks after the shipment report.  With the bloom inspection looking fair to good, the pricing have softened somewhat(it doesn't mean that it dropped.).  The market is reacting to not only lighter demand, but the fact that 2013 crop receipts will be 2+ billion lbs(whatever happened to 1.89 billion lbs estimated last year?) 

And then, there is the drought(Hmm...)

Not much have changed in terms of pricing or demand.  China is still a bit quiet and haven't been making any major moves. Pending any disasters, the industry is expecting record crop for 2014 from all the new plantings, but...

And then, there is the drought(Does this sound familiar?)

While there is no official report of the 2013 crop size, most in the industry believe it will come in under 180 million pounds (81,500 MT). This is mainly due to rain causing heavy damage to the group in Georgia and other southeast growing regions. Demand was strong last week for inshell into China with a large portion of the remaining inshell inventory being sold in a relatively short period of time. The price gap between halves and pieces is shrinking.

Water : I know that this may come as a shock to everyone... but there is a drought in California right now(Yeah... media, press releases, blogs have all been quiet on this one.  Please add your own healthy dose of sarcasm...) With zero allocation on water, there is still water enough for this year's crop.  It will just cost the growers a bit more to get it.  Next year, however, may be a bigger issue.

I remember last year, it was the "Not enough bees to pollinate!!  OMG! We need to raise the prices!'.  The year before that, it was the "There's frost damage!! OMG! We need to raise the prices!".  The year before that... Is it just me, or is there a pattern?  You know, if you cry wolf too many times....

-T. Kim

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