Thursday, February 27, 2014

Nuts!

Pistachio
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

Almonds
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...)

Walnuts
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?)

Pecans
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

Tuesday, February 25, 2014

Dehydrated Fruits


In general, the weather in Thailand is moving to summer period after long time cool temperature from last year. A lot of plantation area currently does not have enough water supplies for their plants especially in the North and Eastern part of Thailand. Thai government report that the drought situation this year will become severe if there is no rain during these couple months.

Please find below our market update for your reference.

-          Pineapple quantity is reduced as per our estimation. The main season is already finished. Pineapple raw material price is starting to increase now due to shortage period. The second crop will available again during April-May/June (small crop). However, the crop size will depend on the water / rain as well. Please consider to build up pineapple in inventory before June. Expect price will be slowly increasing according to market.

-          Pineapple core, there is no improvement of Pineapple core situation same as Pineapple. We still confirm our recommendation to consider in building up inventory for Pineapple core product before off season. Price adjustment will be need as raw material price increase. We expect shortage from June-October. New coming season will be in October.

-           Papaya natural red, our production managed to find suitable supplier per our required quality during January. However, the season of Papaya is about to finish so we can only buy some quantity to average our cost this year. We are currently bringing down our offer price for natural red papaya to reflect our cost. Please consider master contract for this season accordingly.

-           Papaya raw material for color added, price remain high compared to last year. We expect raw material should be shortage before new coming Papaya crop in late August / September 2014.

-          Mango, season will start in late March / early April. We will keep you posted on mango situation again during March. Our inventory of mango should be able to cover our usage till the new season arrives. We estimate availability should be similar to last year as season arrive earlier. We also expect the price will be stable as current pricing.

-           Ginger, due to we received high demand of ginger from various customers this year. Our current raw material in inventory is already near finish. We will have to put our offer on hold during this period to recheck our stock. New season of ginger will be in August. Quality and crop size still not yet known. We will keep the market posted on ginger accordingly.

-          Cantaloupe, season is about now. Price still firm at high level.

-          Kiwi, due to high demand of kiwi order from last couple months, we expect that some shortage may be seen before new kiwi season in October.

-          Strawberry, raw material in our inventory is now finished. New strawberry season will be in June / July. First available shipment will be in August / September. Will keep you posted soon after we received update information on this item.

  
External Factors
·         Unease political situation in Thailand still keep on going. The new election is still not success with many obstructions. Farmers also have consequence effect due to shortage of money from the government project on the rice policy.
·         Many government offices cannot operate their work as normal situation due to protestors try to close the entrances and not allow officers / people to get into. However, the business activity still keeps on going as usual. Only some delay in getting document from government office may be seen in certain period.
·         Thai Baht fluctuates between 32.20-32.80 THB/USD. This may help in slow down the price increase.
·         Freight rate still stay at high level from January 2014.

There are more market updates available on apple, star fruit, peaches, guava, coconut, etc.  There was too many for me list here.  If you need a specific market update, please contact me directly.

-T. Kim

Monday, February 24, 2014

Just how much water...?


Please find below, amount of H2O required to cultivate...



Below is the current "Drought Monitor", detailing how bad each region is.


And if we check the growing regions...


It all adds to "you need to open your wallets a bit wider" at the grocery checkout lines... either that or "No, you can't have a bag of walnuts for your snack... how about some Twinkie?"

Wednesday, February 19, 2014

Flooding

Bolivia flooding conditions

Brazil nuts will not be shipping out anytime soon.



So... drought in California, flooding in Bolivia, and I'm getting snowed in New York.  Is it just me or does it seem like we're getting more of these now?

Tuesday, February 18, 2014

Farmers vs Tree Huggers

This is sure to cause flames....

... Reduced water allocations will also have an impact on school and governments in the Central Valley, said Fresno County Supervisor Phil Larson, by leading to farm workers leaving the valley and taking their children out of the schools. Reduced farm spending will also mean less revenue for local businesses and reduced tax receipts for local governments.
“I can tell you right now the biggest threat to farming and industry in California is the Endangered Species Act,” he said. “They can declare a critter endangered whether they see it or not. They say you have the habitat so it must be there, and you must mitigate it. Then they ask the farmers to pay a penalty because they can’t farm that land. How can that be right?
Larson agreed the Central Valley needs the water from Temperance Flat Dam. “I had a reporter tell me we did not need storage because we were going to get all this rainfall from climate change. I told him you made my point because we need to be able to capture that rainfall when we get it, and for that we need storage.”...

As handler/member of the food industry, I see and understand the plight of growers and farmers.  This is their livelihood and they need to put food on the table for their family. (Although in case of almond growers, it's a choice of paying off their yacht, or buying that second vacation home in Belize)

With the amount of damages that we've caused the environment so far, I am not sure if backtracking on our environmental/conservation laws are the best option.   

-T. Kim

Cashew Update


Indian and Vietnamese cashew market remains very quiet, with poor demand and sales for kernels.  Prices remain stable and there is a whisper of news that kernel prices may weaken below the current level as the harvest season approaches.

There are big lots of new seeds that are coming out to the market(RCN : Raw Cashew Nut), but the price is too much for the processors to pick up.  The RCN has hit a high record and it is very risky for packers to cover when the kernel market is weak

Well, at least there's SOME news.  Cashew may be only nut that's declining in pricing right now... instead of pecan pie, how about some cashew pie!...(someone should really come out with a recipe for that)

-T. Kim

Thursday, February 13, 2014

Walnut Shipment, January 2014


WALNUT MARKET/CROP REPORT
  
CROP:

The final California 2013 walnut crop has been set at 490,554 tons, 5,000 tons less than the 2012 crop.

The Chandler crop came in at 226,055 tons compared to 207,413 last year. Howards was 69,577 tons compared to 60,259 tons from the 2012 crop.  The Tulare tonnage was 63,235 tons, about 4,000 tons less than last year.

As expected, the Hartley crop was down about 5,000 tons (52,089 tons) which I believe is a record low tonnage in decades.

It is still too early to report on the upcoming 2014 crop but there are some concerns regarding the California water conditions.  Although the Central Valley received a nice storm last week which resulted in several inches of rainfall, California is still more than 50% of normal.  However, there is another weather front forecasted for this weekend and hopefully, we will see some additional rainfall from this storm also.

Again, not sure how the drought will affect the 2014 crop, but it would be a good guess that it will not help...

January inshell shipments were 22.9 million pounds, up 2.7 million pounds from last year. Shelled shipments were 25.6 million pounds, down 1.3 million pounds from last year. Total January shipments were 40,308 tons (inshell equivalent) compared to 40,451 tons last year

The total year to date shipments (inshell equivalent) is 299,845 tons, compared to 293,135 tons at this time last year.

With the current shipments about 7,000 tons ahead of last year, and the fact we have 5,000 tons less tonnage, I see no reason we should not sell this year’s crop by August.  If so, this would again give us about 49,000 ton carry-over, which is about what we need to fulfill September commitments.
   

Walnut Shipments Recap 

Month (Jan)            2012/13      Year to Date      2013/14     Year to Date     Percent

In-shell (lbs.)             20,389            247,830              22,923      263,608             6.3 %

Shelled (lbs.)             26,867            150,267              25,558      148,884            -0.1%

Total Tons               40,451             293,135             40,308       299,845             2.3%


MARKET:

Basically, the walnut market has been floating the past month or so, with very little movement one way or the other. I believe this trend will continue…that is unless China comes back in heavy after the Chinese New Year.  In any event, the strong January shipments will also help solidify the market which I believe will stay status quo, at least for the next month or so.

Inshell Jumbo/Large chandlers are trading on both sides of $2.23, with Tulare’s/Howards still in the $2.10 to $2.15 range. Jumbo/Large Hartley inshell are on both sides of $2.05.

Chandler LHP 20% on both sides of $5.00, depending on the packer’s inventory position.   LH 80% still around $5.45.

Regular LHP is trading at $4.80 with CHP getting close to $4.60.  With the additional availability of inventory of Medium and Smaller material, the prices are now about the same as the halves and Pieces market. 

As for the forward market I don't believe the market will move much one way or the other that is unless China comes back with heavy bookings...

c/o Pete

My thoughts on the walnut market : 
They've learned very well from almond industry... They, along with all the other agri-industry in CA, will be riding the threat of "drought" and "China", all the way to the bank.

Current expectation is that we may see a repeat of last year, IE rising prices during summer season due to "lack of availability".

-T. Kim

Wednesday, February 12, 2014

Almond Shipment, January 2014

Please find the shipment numbers from January 2014

Domestic Shipments for the month were 52.25mm lbs. or +17% of Jan.’13 shipments which totaled 44.65mm lbs.

Domestic Shipments crop year to date were 317.9mm lbs. or +12% over previous crop year shipments of 284.9mm lbs.

Export Shipments for the month were 108.0mm lbs. or -3% vs. Jan.’13 shipments of 111.9mm lbs.

Export Shipments crop year to date were 752mm lbs. or +2.8% vs. crop year to date last year shipments of 731.4mm lbs.


Total industry shipments for Jan.’14 were 160.3mm lbs. or +2.4% of Jan’13 shipments which totaled 156.5mm lbs.

Crop year to date shipments are 1,070 billion pounds or +5.3% of last crop year to date shipments of 1.016 billion pounds.

January’14 shipments were a record for January and the 4th monthly record this crop year.  Year to date crop receipts are 1.98 billion lbs.

Crop is approx.. 67% sold, which is just above the 5 year average of 65%.


I had a interesting email from one of our suppliers...
Me : ... Please advise on what effect will this(report) have on prices
Vendor : ... Up Up and Away~!...

Well, I'm glad that one of us is happy about the rising prices...

-T. Kim

HR 3964

c/o Raju Chebium
Gannett Washington Bureau

Washington DC

A Republican bill that would increase the amount of water available to farmers in CA's Central Valley, passed the GOP-majority House on 229 - 191 vote.

The measure would increase the share of water farmers and dairy producers could access under Central Valley Project, a federal water-management effort launched in 1933 to combat chronic shortages. Under the bill, the increased agricultural quota would result from the elimination of the allotment for the San Francisco Bay Delta to improve the habitat for Delta smelt and other fish.

The bill's backers said they want to help the region's economy and keep food prices low for consumers across the U.S. Critics said the measure would overturn state and federal laws and established science.  Central Valley producers have long resented water rationing and want to increase the amount they can use. Environmentalists say the smelt is a barometer of the San Francisco Bay's health and have gone to court to preserve water shipments from Central Valley.

The tension between the two sides has increased as California's drought has worsened -- and was reflected in the heated floor debate between California's Republican and Democratic House members.

-T. Kim

Friday, February 07, 2014

Rain or No Rain.. which do we want?!

Drought update

This weekend, the forecast for northern California calls for 1 - 3+ inches of rain/snow.  While this is relief for region suffering from the effects of a long running drought, the timing couldn't be worse.

Farmers, ranchers, environmentalists ... and Politicians have all been praying for rain or snow in California.  However, we really don't need it rain during the bloom season for the almond trees!!!!  This hampers the flowering and pollination for the almonds trees.

(On a side note, everyone last year was talking about how there weren't enough bees.  This year, that bit of news hasn't made headlines.  It's primarily because there is a bigger concern... lack of water.  They'll be talking about this one if and when the drought issue is resolved)

There is another concern that affects other products in the nut/dried fruit industry.

Growers usually plant and cultivate multiple crops.  Almond growers generally also grow figs, prunes, etc...
With the high prices(yes, I can hear everyone moaning about this one) of almonds, there is a bigger profit margin on growing almonds vs growing "just about anything else".  With only a limited supply of irrigation... I'm sure you can see where I'm going with this one.  Growers are pulling trees and planting almonds, walnuts or pistachios.

These are tree nuts, and tree fruits.  They are not row crops like corn or wheat, where you can just "skip" a year and continue next year  They take time before they are mature to bear fruit.  With the rising costs and lack of availability on irrigation, we will see problems becoming worse, before it gets better.

-T. Kim

Monday, February 03, 2014

California Officials forecast "Zero" water deliveries


Basically... the news isn't good and its not improving

State officials announced Friday that 29 water agencies serving 25 million people across California can expect “zero” water deliveries from the State Water Project this summer because of the worsening drought.

Although that delivery projection could change, it is the first time a “zero allocation” forecast has been made in the 54-year history of the State Water Project, which is operated by the California Department of Water Resources and typically delivers Sierra snowmelt to cities and farms throughout the state.

The decision was among several emergency measures announced Friday to deal with a persistent statewide drought that has left the California mountain snowpack at just 12 percent of the January average.

The “zero” forecast affects urban and agricultural areas from San Jose to San Diego that depend in part on water diverted from the Sacramento-San Joaquin Delta. Most of these areas have other water sources to draw from, including local reservoirs and groundwater wells.

The State Water Project serves about 750,000 acres of farmland. Most farmers have access to surface water and groundwater, including private wells, and it’s common for them to be given short allotments in drought years. Before Friday’s announcement, the State Water Project delivery forecast was only 5 percent of the maximum amount allotted in its contracts with water agencies.

Even so, the announcement assures further conservation measures will be required, and may press some farmers to fallow land. Farms consume about three-fourths of California’s freshwater supply.

The federal government operates a separate Delta water diversion system, the Central Valley Project, which is not affected by the state forecast. Its delivery forecast is expected later this month.

“This is the most serious drought we’ve faced in modern times,” said Felicia Marcus, chairwoman of the State Water Resources Control Board, which approved the emergency measures. “We will have to collaborate our way through this as never before.”

State and federal officials announced that starting today, water diversions from the Delta, a crucial wildlife habitat and California’s largest freshwater source, will be minimized to serve only urban areas and health and safety purposes. No water will be diverted for farms.

In addition, some 5,800 junior water rights holders across the state – mainly farms – will receive notices next week that they must reduce their water diversions from streams. And water quality rules in the Delta will be adjusted, which will increase salinity for some water users in the region and may affect wildlife.

“It’s a very serious situation,” Terry Erlewine, general manager of the State Water Contractors, said in a statement. “Across the board, water districts are ramping up conservation and efficiency efforts to go beyond the conservation achievements already made.”

The zero delivery forecast does not affect water users in the Sacramento region, who are not served by the State Water Project. But the capital area faces its own shortages and is enacting broad conservation measures.
On Thursday, for instance, the board of directors of the Placer County Water Agency will vote on an emergency declaration and call on customers to reduce water consumption by 35 percent. It will also consider an emergency public works project to install temporary pumps and piping to improve access to water from two existing wells.

The Delta water quality rules are being adjusted so that state and federal agencies can preserve water stored in reservoirs, primarily in the Sacramento River watershed. This will ensure that water is available, in the event the drought continues, to deliver to people in the hot months ahead and to ensure salmon and other fish can survive in the rivers.

“Today’s action means everyone will get less water as a result,” said DWR director Mark Cowin. “There’s simply not enough to go around.”

Another change allows water agencies to open the Delta Cross Channel Gates near Walnut Grove. Those gates divert a portion of Sacramento River flows into the interior Delta, where it is then diverted by state and federal pumps. Open gates mean less fresh water will flow out of the Delta to San Francisco Bay, and portions of the western Delta will become saltier. But officials said they expect those western Delta waters will still meet drinking water standards.

The gates are normally closed at this time of year to ensure that young salmon migrating downstream to the ocean are not sidetracked. Opening them now means those salmon are more likely to be eaten by predators in the interior Delta or killed in water diversion pumps.

Officials may adjust the gates daily to avoid harm to salmon. Juvenile salmon are prone to migrate during daylight hours, then seek protected areas and stay in place at night. So the gates may be opened only at night, when salmon are less active.

The water board, which oversees water quality and water rights statewide, plans to review all the changes on an ongoing basis and amend them as necessary. It also plans to beef up its enforcement reach. Tom Howard, water board executive director, said some employees would be retrained to do inspection work in the field to ensure junior water rights holders heed the curtailment order.

Local agencies that depend on the State Water Project greeted Friday’s news with alarm. Many expected a low allocation, but zero was a shock.

“I never though in my entire career I’d see a zero allocation,” said Jim Beck, general manager of the Kern County Water Agency.
Beck has worked for the agency for 30 years. It is the largest agricultural water contractor in the State Water Project system and also serves urban areas including Bakersfield, Taft and Tehachapi. He said farmers will be able to draw from a vast groundwater banking system operated by the agency and, in some cases, from private wells.

But that water won’t go far enough, he said, and many farmers will be in “survival mode” this year.

“Our growers are going to have to make really tough decisions on which crops they can fallow and which trees or vines they can take out of production,” Beck said.

Marty Lugo, spokeswoman for the Santa Clara Valley Water District, said her district was hurting even before the announcement. The district holds State Water Project contracts for as much 100,000 acre-feet of water each year. Until today, its allocation for this year was 5,000 acre-feet – about 1 percent of the water distributed by the district.

“We already expected we would get a small amount, if any at all,” Lugo said, adding that annual water demand for the district is 365,000 acre-feet.

The district has taken steps to cut water usage by 10 percent. Its groundwater supplies are expected to drop below 300,000 acre-feet by the end of the year.

At nearby Alameda County Water District, about 40 percent of water supplies typically come from state allocations, said assistant general manager Robert Shaver. “Obviously, it’s a pretty serious situation whether it’s at 5 percent or zero percent,” he said. “We had kind of been expecting that it would go to zero percent.”

To make up for the lack of water from the state, Shaver’s district will rely more heavily on groundwater. Those supplies will be tight, he said, as the year progresses. The district has asked customers to cut water use by 20 percent.

Bill Jennings, executive director of the California Sportfishing Protection Alliance, worries that the emergency changes, along with the drought itself, could push some imperiled Delta fish species toward extinction.

“Yes, fish are going to suffer. Population crashes occur during these periods,” Jennings said. “We can cast blame, but we’re in this situation and they don’t have a lot of leeway. Everybody’s going to pay a price this year.”


Source : The Sacramento Bee
http://www.sacbee.com/2014/01/31/6119042/california-officials-forecast.html

Wednesday, January 29, 2014

Cashews

The market on cashews are still eerily quiet.  With all the news breaking from California about the temperature, moisture, bees, etc... Cashew is being ignored like a middle child at a family reunion.

"With cashews now the lowest priced tree nut in the market(other than peanuts), this could lead to some good support during the summer months.  Despite the fact that trading has been very quiet for cashews over the past four months, the prices have not weakened.

In fact, they have recently risen slightly due to the high price of raw seeds in Tanzania and Indonesia.  The biggest Northern Hemisphere crops are expected shortly in Vietnam, India and West Africa.  So far, we have not heard anything disastrous to offset the market market.  However, as the raw seed availability is so tight nearby, there will likely be good support at the start of the crops so prices for seeds are very likely to remain firm at least until end of Q2."

With the prices on the comparable nuts being so high(this means you, almonds, walnuts, pistachios, etc...)We don't see kernel consumption dropping as a result of current prices.  It is highly unlikely that we will see lower kernel prices anytime soon.

Thank you

-T. Kim
(Quotes from Mr. Mark Gravette, Barrow Lane and Ballard, UK)

Tuesday, January 28, 2014

California Drought

Californian Tree Nuts

It seems like "drought" is the only word that everyone seems to talk about in California, these days.

With current pricing on domestic nuts(pistachio, almonds, walnuts, etc), everyone has a stake in how much water California gets in the next month or two.  Unfortunately, it isn't looking too good.

According to US Drought Monitor(produced jointly by USDA, Dept of Agriculture and National Drought Mitigation Center, or NDMC), Western US is in for "Severe" drought for the next three months.  The reservoirs and wells are at lowest levels seen in decades and there doesn't seem to be good news in sight.

The almond growers and packers are becoming concerned for next year's crop.  The silver lining seems to be that they're finding that crop receipt number may hit 2 billion pounds.  However, with the recent news, the prices from growers have only increased.  Market is continuing the trends experienced last week. We now are looking at a nearly $0.20 cent increase in prices since the shipment report earlier this month. Many regions seem to have been uncovered on all early 2014 needs and well into the spring.  It is still too early to tell if this drought will have effect, if any, on 2014 crop.

The walnut market, which traditionally trended lower past Chinese New Year purchases, have remained stable.  With current conditions in CA and news that Chinese walnut crop is expected to be short anywhere from 20 - 30%, have kept the walnut pricing at a stable level.... which is still very high.

Please contact me if you have any questions or concerns regarding updates within the market.

Thank you.

-T. Kim



Friday, January 10, 2014

Walnut Shipment : December 2013

Good Afternoon All

Please find the update from Walnut Board's shipment report below.

As of December, 31, 2013, the packers reported walnut receipts of 487,963 tons, which should reflect close to the final 2013 crop tonnage.


Although the Central Valley has experience extra cold temperatures for the month of December, growers feel they may lose some new growth, but overall, it should not have much of an effect on the trees.

However, the major concern right now is that California is experiencing a record breaking drought. It has been reported that 2013 was the driest calendar year on record for the San Joaquin Valley.  Many of the experts fear that there is little possibility of relief in sight as the long term climate predictions do not suggest a likelihood for an average or above average rainfall over the next several months.  Right now, the Valley is only 20 percent of 8.4 inch rainfall average for this time of year.

I have discussed this with several of the major growers in this area and all are saying that water could be a major factor for the 2014 walnut crop.  Many growers were irrigation in Mid-December, which is rare for this time of year.  Many of the growers believe they will be looking forward to higher cost for water as well as some shortages in certain areas.

December inshell shipments were 36.7 million pounds, up 3.3 million pounds from last year.

Shelled shipments were 29.6 million pounds, up 2.6 million pounds from last year. Total December shipments were 51,779 tons (inshell equivalent) compared to 47,849 tons last year

The total year to date shipments (inshell equivalent) is 259,784 tons, compared to 252,684 tons at this time last year.

Based on the fact that the crop is down, shipments are up; I believe the industry should not have any problem moving this year’s crop at the current market levels.

California Walnut Shipments Recap (000)

Month (Dec)         2012/13      Year to Date      2013/14     Year to Date     Percent

In-shell (lbs.)             33,357            227,441              36,740      241,464             6.2 %

Shelled (lbs.)             27,680            123,400              29,601      123,200            -0.2%

Total Tons               47,849             252,684             51,779       259,784             2.3%

The market has not moved much over the holidays and will most likely stay firm at least for the next month or so.


Demand from Europe for shelled products and Turkey for inshell is still active as well as domestic customers looking to secure contracts for their annual requirements.

The forward market has yet to be determined and the market will adjust to whatever China does after their New Year. My guess is they will be back as current shipments are down for this region and there will most likely be less carry-over inventory they had at this time last year. In any case, don't believe the market will move much one way or the other.

Regards,
R.L. "Pete" Turner


Thursday, January 09, 2014

2014!

Happy New Year Everyone!!

It has been a long and hectic year, though I'm glad that 2013 is over and welcoming 2014...

Well, not so much.  A lot of information from California, Brazil, Turkey, SE Asia isn't so great.

Please see below regarding market outlook for 2014.


Apricots
Turkish dried apricots account for almost 80+% of the world’s market.  Turkish apricots have mild and sweet taste when compared to US or China, which offers a sharper, more distinct taste.  The apricot market in Turkey remains stable for now.  The quality of 2012 crop had been leaning towards smaller sizes.  Availability for Size #1 was very short.  The current crop, 2013 harvest, shows improvement on quality of larger fruit.  Size Jumbo and #1 is now in good supply and outlook for 2014 remains stable.  The harvest of Apricots in Turkey is from July(early) to October, with shipments to US arriving by November.

Prunes
-         Majority of the prunes originate from US, Chile and Argentina.  Prunes, dried plums, are currently in short supply, as there currently is a draught issue plaguing California and western United States(It will be a recurring issue, as noted below).  The drier/packers in California are now “off the market”.  They’ve cleared their excess inventory and are only holding inventory for contracted quantities.  The harvest of Prunes in Argentina/Chile is in March and August/September for US crop.

Banana Chips
-         Dried banana chips are imported into US from Philippines.  The current crop and supply remains stable, after a sharp spike, due to weather related issues.  The dried banana chips are available throughout the year.

Cranberries
-         Dried cranberries are produced in US, Canada and Chile.  The supply and crop from 2012 crop was good, with stable demand, driving the pricing lower during 2013.  The 2014 market also seems very stable, with no spikes and/or dips in the foreseeable future.  The cranberries are harvested during March/April for Chile and Sept/November for Northern Hemisphere.

Cashew
-         There are a few players that are involved in the Cashew market.  Vietnam and India remains top processors in the world, trailed by Brazil.  Ivory Coast(Africa) are leaders in RCN(Raw Cashew Nuts).  Majority of imports to US originate from Vietnam and India.  The market has been stable for the last 3+ months, with everyone (buyers and sellers) expecting the pricing to rise.  African crop remains to be seen, though we are expecting a good quality crop.  With the current market conditions, any news that adversely affects the market will send market pricing higher.

Almonds
-         And now, we run in to major issues… The US almond crop(covering majority of world production) has hit record production for the last 3 years… with supply still unable to meet the demand.  The almond crop has seen increasing(spiking) pricing levels for the last two years.  The almonds remains extremely high priced, compared to previous years.  With the news of impending draught issues in California has only acerbated the problem.  The size of the kernels remains a problem, with virtually no size larger than 27/30 available.  There may be relief in sight for 2014 crop as subjective and objective crop estimates become available in March and May.  The harvest is in July with August ship dates for new crop.  With delays and issues plaguing the industry, we’ve noticed that for the last few years, the new crops have only shipped beginning in September.

Walnuts
-         The US walnut is the current leader in production, providing majority of the world.  Surprisingly, the walnut market has been quiet with no major market movements post harvest.  This may be due to uproar over the almond crops.  This does not mean that market pricing is “reasonable” and supply is abundant.  At current trading price, many packers and traders feel that pricing may not be sustainable.  While we do expect market pricing to ease off a bit in the coming months, China and India are major factors to consider(more on this below).  The crop estimates are available during Q2 and Q3, with harvest occurring from early August through October and November for Chandler varieties.

Pecan
-         The US pecan market is at a very high level.  US and Mexico are major suppliers, with growing regions in Texas, Georgia and surrounding states.  The current pecan market is about $1/lb over last year’s opening market price for new crop.  Barring any issues (weather, pests, China…) we may see a gradual easing of the market pricing as we move through 2014.  The pecan crop harvest is during Q3, ending in November(Just in time for Thanksgiving/Christmas season!). 

Pistachio
-         Pistachio market has been on a roller coaster for 2013 season.  The pricing differential throughout the year has been +/- $1.50/lb(or about 30%).  Currently, the pistachio market is very high, with limited offerings from majority of the packers.  The quality of the crop seems to run towards smaller sizing(21/25) and pricing remain firm in the foreseeable future.  The pistachio harvest is generally done during late Q3.

Please let me know what your thoughts are on the matter. 


Monday, August 20, 2012

AUG 18, 2012

Cashew market was steady in Week 33 – hardly any business reported although there was a fair amount of buying interest from some traders in USA & Europe at lower end of the range.  Indian domestic market moved up a bit but the activity was slow.  China demand in Vietnam is also slow but expected to pick up.  Small shellers who were selling at lower levels in June/July have been quiet for the last few weeks.  Most of the other shellers who have RCN to process till end of the year are waiting to see how kernel market behaves in coming weeks.  As they have paid high prices for the RCN and there is not much replacement available, they are not keen to sell at lower levels.

Buyers in the main importing regions – USA & Europe – are picking up any offers they see at the lower end of the current range (for nearbys) BUT  do not seem to be willing to pay the 10-15 cents premium that shellers are asking for the forwards. This situation is likely to continue until there is some contracting with retailers.

In normal times, some people – on both sides – would be willing to take forward positions but the precarious global economic situation is making things difficult.   Buyers do not want to pay premium for securing volume as they do not know what they will be able to sell.  Shellers do not want to sell forwards at lower end of the range because it is below cost  and they do not know see any prospect of decline in RCN prices since availability in next few months is limited.

In the medium term, demand will be the factor that will determine market movement. There is no big news expected on the supply side until the next Northern crops in 2013. Of course, the Brazil & East Africa 2012 crops which will start in Sep/Oct will have some impact but not too much as they only produce 25% of the world crop.

In the next 6-8 weeks, we will know trend of Asian demand for the last quarter and we will probably get some idea of USA/EU demand for the first half of next year.  If activity picks up in this period, we could see prices inch up a bit to the levels seen at the end of last year.   Otherwise, prices will continue to move around the current level unless there is a big drop in demand followed by a decline in RCN prices.

Would be grateful for your comments on market situation + views & forecast on trend for coming months + any information, news AND interest.

Regards,
Pankaj N. Sampat

Monday, August 13, 2012


FOR IMMEDIATE RELEASE

Atlantix Commodities Opens in Brooklyn, New York
 
Brooklyn, NY, July 15, 2012 - Atlantix Commodities announces the opening of its American offices in Brooklyn, New York.  Atlantix will offer a full line of imported nuts and dried fruit brought in directly from source countries.  Included will be cashews, hazelnuts, brazil nuts, peanuts, pumpkin seeds, pine nuts, apricots, dried pineapple, papaya and mango, as well as snack items such as fried green peas and rice cracker mix.  Atlantix has also incorporated Bentzy’s Brokerage’s domestic line of nuts and dried fruits into their offerings and services, which includes almonds, walnuts and pecans, peaches, and cranberries .

Atlantix was formed out of an association with Barrow, Lane and Ballard, a UK based trading company that has been in business for over 120 years.   Known for high quality, excellent sourcing, and product expertise, Barrow, Lane and Ballard is one of the leading suppliers of nuts and dried fruit in the European markets.  

Bentzy Klein, president and CEO of Atlantix Commodities, states “It has been long recognized that the EU is known for insistence on high quality.  The association with Barrow, Lane and Ballard brings a European approach to the American market with excellent pricing and high product standards.”  
 

Monday, September 12, 2011

Weekly Cashews update

SEP 10, 2011


Week 37 was the sixth consecutive quiet week in the Cashew market. Despite this quietness and sales at lower levels by some processors in Vietnam, most processors in India (and many in Vietnam) are not willing to reduce their prices. Business has been reported from Vietnam for W240 around 4.75 and W320 around 4.40 FOB. Prices from India for W240 around 4.85-4.90 and W320 from 4.55 to 4.60 FOB – stray business was done by some processors. This wide range of prices is distorting the market and making buyers wary of taking on large positions although they are picking up the lower offers.

In the Indian domestic market, there was limited business by a few processors but in general, market continued to be quiet. Wholesalers and stockists seem to be waiting for signals of retail offtake at the beginning of the peak consumption season before taking on additional volume.

On the RCN side, there are some stocks in Guinea Bissau but the stockists are holding on for high prices. The upcoming Southern crops are expected to be normal – although there are reports that adverse weather may affect the crop in some regions of Indonesia. Current price in Indonesia is very high – approx US$ 2000. The next six weeks will provide a reasonable idea of the crop prospects and prices in Indonesia & Brazil. Tanzania prices will be known by end Oct/early Nov. Mozambique RCN prices will not be known until Dec.

The market is in stalemate mode. Activity in the kernel market in the next 6-8 weeks will determine what direction the market will take.

If the kernel demand before end of Oct – either India/Asia or USA/Europe – is good, prices will remain in the current range. If demand in BOTH regions is normal to good, prices could move up a bit. In either case, RCN prices will not decline (since availability till next March is limited). Consequently, a change in price trend will be possible only in second quarter of 2012 provided Northern crops are good and supply becomes comfortable.

On the other hand, if kernel demand in both regions is slow for the next six weeks, prices could start drifting lower from end of Oct – more so if the Brazil crop is good. If this happens, shellers will be slow in buying, leading to lower RCN prices. And that will mean the year will end with higher than normal inventory – most probably in the form of RCN – with a potential of further downward pressure on prices if the 2012 Northern crops are good or even normal.

It is impossible to judge what will happen in the medium term, especially in the current situation when there are so many economical and financial uncertainties in USA & Europe. But the general feeling is that demand in Sep/Oct will not be so low as to trigger a price decline immediately. Indian demand may not be strong but since India is predominantly a spot market, there will certainly be steady buying during the peak consumption period upto end Dec / early Jan. Following the trend of short period buying, USA/Europe will also have to buy some volume in the next 6-8 weeks for late 2011 / early 2012 shipments. These two demand side factors will support the market and trend will change only if 2012 crops are normal to good. Only a dramatic fall in kernel buying in Sep-Nov could lead to lower prices before that – and that is possible only if there are some big negative developments in USA and Europe economies / financial markets.

Would appreciate your comments on current market situation, your views on trends & prospects and any specific news or information


Regards,
Pankaj N. Sampat

Walnut Market Update September 11, 2011

R.L. “Pete” Turner
CROP:

NASS’s official 2011 walnut crop “objective” estimate of 485,000 tons was a surprise to many in the industry. It came up 38,000 tons short of the Packers “subjective” forecast of 523,000 tons set in late July. Never the less, it is still the second largest walnut crop in history, 18,000 tons less than the record 2010 crop.

Growing conditions were similar to last year, as the orchards received adequate chilling hours, above average rain and moderate temperatures, all ideal for a good and quality walnut crop. However, again like last year, the crop is at least two weeks late and most packers will not go into production until the last week of September.

NASS’s survey data indicates the average nut set per tree is down 18 percent compared to last year. However, the nut sizes appear to be larger than last year, so hopefully, we will have more large and jumbo walnuts available than we did last season.

Listed below is my guess-a-mate for the major varieties tonnage, which is based on the tree nut count and nut sizes.

Variety 2010 crop 2011 crop Difference

(Tons)
Chandler 209,000 198,000 (11,000)
Hartley 70,000 65,000 (5,000)
Tulare 47,000 52,000 5,000
Howard 55,000 50,000 (5,000)

August walnut shipments were 19,597 tons, about the same as last year. This puts the 2010 crop total year shipments at 506,568 tons, 53,000 tons more than last year. Again, the market was driven by the record bookings from China/Hong Kong, Turkey/U.A.E and Europe. Exports sales accounted for 60 percent of the total shipments with domestic at 40 percent.

The 2010 crop carry-over is expected to be less than 40,000 tons. This coupled with the 485,000 ton crop gives the industry a total availability of 525,000 tons, 25,000 tons less than last year.

Right now, the next several weeks weather forecast looks good and grower harvest operations should go well. However, with a late crop, everything is compressed and the grower harvesting, the huller operations and walnut plant receiving and production facilities will all be highly challenged.


Market:

Pre-season bookings that started out very heavy in June have now dropped off slightly, however, with the opening prices coming out lower than most expected; new bookings will most likely be going full force by Monday.

Opening prices for Jumbo Hartley’s were set at $1.65, Chandler 70/30 Jumbo/Large at $1.75 and Regular Light Halves and Pieces at $3.85.

By the end of next week, we should know how the market will react to these prices; but my guess is that the new bookings will be very active at these levels. However, contracts for early shipments may bring a premium, especially on in shell Chandlers.

Please let me know if you have any questions or comments.

Kind regards,

Pete

Monday, July 11, 2011

Weekly Cashews update

JULY 9, 2011

In Week 28, there was reasonable activity in all market. Trades and offers were in a wide range e.g. W240 from 4.85 to 5.00 / W320 from 4.50 to 4.65 / W450 and SW320 around 4.50 / Splits from 3,90 to 4.00 / Pieces from 3.80 to 3.90 FOB. In general, selling ideas were at higher levels. Buyers were content to buy limited volumes for nearbys - they were looking for discounted offers for forwards but there were no such offers from reliable processors. Indian domestic market was quiet after a month of good activity during which period, prices moved up about 15-20% for different grades. The next round of domestic activity is expected in August.

RCN market was steady – IVC/Ghana in 1350-1450 range, Bissau in 1675-1725 range, Senegal/Gambia around 1550 C&F. Most of the activity was in resale market. Logistic problems continue – delays in loading + longer transit times. It seems that total RCN shipments from West Africa may be more or less the same as last year (but India’s share will be lower). However in terms of kernel yield there will be a significant shortage, specially for white/fancy grades.

Kernel inventories in the main importing countries are low - buyers have been in market every few weeks to buy “as needed” to keep things running. Due to the high prices, they have been buying small volumes for shorter spreads. Delays in RCN arrivals into India & Vietnam has meant there is lower than normal inventory with shellers and so they have not been under pressure in periods of lesser activity. This trend is likely to continue until supply improves significantly or buyers can reduce buying long enough for shellers to feel pressure to sell.

There are rumblings of delays in shipments from some shellers – some of which might turn into defaults or renegotiation of price. Although this will not reduce overall kernel availability for the second half, it will certainly mean supply distortion (and higher prices if defaulted buyers are forced to buy afresh to fulfill their commitments or requirements).

Unless something dramatic happens, there is no reason to expect any change in the current trend of regular steady buying and firm prices for next few months – we would not be surprised if see some more increase in prices in the third quarter (depends primarily on Asian demand and secondly the need for importing countries to keep buying for nearbys).

It is too early to judge – or even guess – how things will develop for 2012 deliveries. If contracting for 2012 is lower volumes over normal periods, we might see prices softening in the last quarter (especially if the Southern crops are good). If the 2012 contracting is for short periods, that will mean the trend of regular buying every few weeks will continue and this will provide a floor to the market.

Except for Almonds, prices of all nuts (including peanuts) are higher than historical averages. This has not affected consumption too much so far although there might have been some shifts within the category for some end products. It will be interesting to see what impact this has on roaster and retailer strategies for 2012 for nuts in general and cashews in particular. This and the outlook for 2011/12 crops will determine what will be a realistic price band for Cashews by end of the year for first half 2012.

We would like to know your comments on market situation, forecast / views on demand & market trend and any interesting news + information.


Regards,
Pankaj N. Sampat