Some good movement on the market this last week in terms of Cashews and Almonds.
The cashew market has definitely softened caused by some significant factors. The price of Tanzanian seed has moved down and the left over seed has also come down which has pushed cashew prices down. China isn’t purchasing any 320/240 so price has fallen, while 450’s is still holding firm because that item is still being purchased by China.
This market can move easily either way. If China comes in with heavy buying for the Luna new year that will push the prices up, that could also be the reason why they are not purchasing now in anticipation of the cheaper prices and hoping it will drop more and then they will come in heavy, this more than any factor will determine the price going forward. We have also seen a softening in the LP price due to the drop in the price to 240’s and 320’s so this has pushed down the LP price.
We would advise to book SPOT, you need to cover your QTR needs in case of very heavy buying which looks most likely.
This month’s shipping report is very important to determining where this market is going, it’s been the third week since offers have been flowing, and the market is finally breathing. Based on the report we can get a better picture but most people in the market seem very convinced that pricing isn’t going to come down. The thought process is that the almond farmers have made good money for the past few years and combined with the lack of rainfall are in no massive rush to move product. Small factor in terms of rainfall, the state of California signed an agreement with the Israeli government to implement drip irrigation which would negate the problem of drought, this week take a few years to get done but it shows the mindset of the state, that they are not “hoping’ for rainfall they are going to prosper even without it.
Small movement on the pecan market, the price discrepancy between Halves and Pieces and Mammoth halves is getting smaller, they are looking to close that gap because there are not so many pieces on the market because of the sophistication with the shelling. While it’s a good crop the farmers are intent on holding high prices and are happy to store product in order to achieve that.
While the Mexican farmers need funds so will try and undercut pricing to move product. The difference in this product is the lack on conformity between Mexican pecan growers, Texans and Georgia so harder to tell what the farmers will do overall.
We expected the price of walnuts to drop, it hasn’t yet due to the late crop and the pipeline issue, but its starting to move and there should be more availability in the next few weeks. We have taken a position on Walnuts LHP and combo Halves and pieces.
We are offering great pricing on 650 ct