Market News on Nuts

SACRAMENTO/TEHRAN. Although the US had a much bigger pistachio inventory of 541,689 mt at its disposal in 2020/2021, Iran has succeeded in shipping similarly high volumes this season so far. Now, however, the tables are about to turn as market inventories are nearly exhausted in Iran. Prospects are also not exactly encouraging for 2021/2022.

ATLANTA. In the USA, traders are very satisfied with the demand situation. Even though shipments to some countries declined, China was able to compensate.

MADRID. Almond production estimates in Spain range as far apart as 25,000 mt. Frost and fungus are, however, expected to cut production. Spot market prices in Europe have changed.

MANILA. Restrictions related to the coronavirus in the Philippines and the difficulties faced by Asian exporters are causing significant delays in shipments. The outlook for the near future is rather bleak.

HANOI. Vietnamese exporters can be very satisfied with the first five months of the year - exports increased significantly year-on-year. Foreign buyers are probably less happy with the development of export prices.

BUENOS AIRES. Snow in Córdoba has taken Argentina's peanut farmers by surprise. This is the first time snow has been witnessed in 14 years. Although harvesting has mainly been completed in the areas impacted, quality is a concern. Issue is that kernels with a high moisture content may have been damaged. This is, however, not the only problem.

ORDU. Trading is subued in Turkey's hazelnut market as uncertainty prevails and buyers prefer to wait. The TMO is still to issue a bid price and the Turkish lira has lost in value. Market players are also waiting for Ferrero to act. Traders are, nevertheless, drawing conclusions as to how prices will develop.

HANOI. The prospect of a smaller crop in Vietnam and the horrendous freight costs are causing export prices for cashew kernels to increase further. Overall, however, exports are going well.

MADRID/SACRAMENTO. Last week, the Spanish Almond and Hazelnut Exporters Association (SAB-Almendrave) held its sixth annual meeting. The focus was on the prospects for the 2021 almond crop in the main growing countries.

SACRAMENTO/SANTIAGO. Container shortages are a massive problem at present. Walnut exports have, nevertheless, bounced back in the US and in Chile. Prospects are, however, not quite as encouraging in terms of production. This year's production is set to fall short of last year's record, which is now estimated at 783,754 short tons. This has also impacted spot market prices in Europe.

ORDU. After weeks in which the Turkish lira remained weak, the market has now witnessed a rather unexpected turn. Signs of economic recovery have given the local currency a lift. Bookings in the toursim industry are, for instance, much better than expected. Not all players in the hazelnut market are, however, happy about this. Many even fear that they may incur heavy losses.

TEHRAN. Iran’s pistachio suppliers do not stand a chance in the international market this year. Not only has frost severely impacted production but inventories are also running low. The US sanctions are also not exactly helpful. These are, however, not the only problems.

SACRAMENTO/SANTIAGO. The US achieved a record walnut production of just over 707,000 mt in 2020, but a repeat of this is not to be expected for 2021. Chile's crop estimates were also reduced.

ATLANTA. Sowing in the USA is delayed because it is too dry in some growing regions, while other states are affected by cold temperatures and heavy rainfalls. Exports, however, look pretty good.

HANOI/NEW DELHI. Cambodia shipped an incredibly high volume of 836,000 mt raw cashew nuts to Vietnam between January and April as the Vietnam Cashew Association (Vinacas) reports. Total shipments from Cambodia to Vietnam, by contrast, ranged at a much lower 219,000 mt in 2020. Although Vietnam has indeed drastically stepped up imports, this cannot fully explain the sharp rise in shipments from Cambodia. Prices have taken a rather surprising turn in Europe. Traders are hoping for a sustained recovery in India, where the devastating surge in Covid-19 infections basically brought parts of the market to a standstill.

MADRID/SACRAMENTO. In addition to frost, some almond farmers are also struggling with damage caused by fungal infestation. Organic almonds are particularly affected.

ORDU. Turkey's hazelnuts exports may far exceed expectations this season. As buyers are reckoning with further sharp declines in the Turkish lira they prefer to wait and hope to profit from low export prices. This procurement strategy is, however, not without risk.

SUCRE/LIMA. With significant production declines expected for 2021, prices have skyrocketed in recent weeks. Some drastic changes have also been recorded in EU imports.

ATLANTA/BUENOS AIRES. Many buyers, especially in the EU, are currently holding back on new purchases. This is due to high stocks and market players waiting for the crops from Argentina and Brazil.

ATLANTA. After China had largely withdrawn from the US pecan market during the trade dispute, there is now a clear upward trend again. Nevertheless, farmgate prices remain at a ten-year low.

HANOI/ALGIERS. At the 7th African Trade and Investment Forum in Algiers, intensive discussions took place, also between the Vietnamese ambassador and African delegates from various trade sectors. Cashew nut cultivation also played an important role.

ORDU/REUS. Last week, the International Nut and Dried Fruit Council (INC) hosted its online congress where the production data of the current season and the forecasts for the coming season were discussed.

MASHAD. Although the Khorasan Razavi Province accounts for as much as 21% of Iran’s pistachio production, only few will have heard of Khorasan pistachios in the international market. And yet, if traceable supply chains are to be created effective marketing has to be introduced in the province. Large volumes are shipped to destinations in Europe and Asia every year.

HANOI. While production is set to decline in Vietnam, prospects are much more encouraging in Western Africa. Shipping cashew nuts overseas is, however, a challenge. As India is struggling with the pandemic, there is little hope that exports will revive this year.

MADRID/SACRAMENTO. Subjective almond production estimates have recently been issued in Spain. Although only 15% of the planted area is irrigated, plantations with irrigation account for as much as 50% of production in Spain. Thereby showing how crucial sufficient water supplies are. Although production is expected to hit another record in California, the state is preparing for severe drought with dire consequences for growers.

ORDU. The spotlight is on the current hazelnut crop again after prices took a rather surprising turn in Turkey last week. Issue is a rather curious statement made by President Erdogan himself concerning the purchase price for tea produced in the Rize Province. Although this has a massive impact on the hazelnut market, traders reckon that the current price trend is anything but sustainable.

SACRAMENTO/SANTIAGO. Container shortages and other logistical hurdles due to the global pandemic situation are nothing new for US exporters. In April, however, traders managed to...

ORDU. During the counting for the new crop, some anomalies were found in the Ordu region. In addition, a purchase bid by the TMO could be announced soon.

HANOI. Vietnamese producers can be pleased about high demand and very good exports. However, there are considerable differences in prices.

ATLANTA. Both domestic and export demand in the US have increased significantly compared to the previous season. For most a reason to rejoice - only the farmers are not that happy yet.

MADRID/SACRAMENTO. Last week's subjective estimate issued by the National Agricultural Statistics Service (NASS) came with a bang. Although market experts reckon that another production record is out of the question in California this year as the almond trees need time to recover from last year's record of 3.12 billion pounds, the initial subjective forecast rather predicts another bumper crop of 3.20 billion pounds. This would be the third year in a row that production hits a record in California and begs the question how realistic such expectations are. Traders in Europe have, meanwhile, been deliberating over the impact of the pandemic over the last few months. Now the import data recently updated by the European Commission shows a clear trend in terms of demand.

TEHRAN. After the severe night frosts in April, Iranian farmers have now been able to provide initial damage estimates - and the weather continues to keep producers on their toes.

MADRID/SACRAMENTO. The first official crop estimates for the 2021 almond crop are imminent, and at the same time the US almond market continues to record very good export figures in April.

MANILA. The factories in the Philippines are working at full speed, but massive delivery delays still cannot be avoided. The outlook for the rest of the year is also anything but promising.

HANOI. Both the import of RCN and the export of processed kernels are currently causing concern for market players in Vietnam. On the European spot market, this is not yet noticeable in terms of prices.

ATLANTA/SANTIAGO. The USA is not only experiencing smaller acreage this season, but is also struggling with high freight rates and EU import tariffs. The harvest in Argentina is delayed, but the crop is of high quality.

ORDU. Hazelnuts have certainly defied the trend. While the prices for many agricultural commodities have surged in recent weeks, buyers in the hazelnut market have rather profited from attractive prices. With attention shifting more and more towards the new crop, however, the tide is starting to turn. Issue is that prospects appear to be far from encouraging in other producing countries such as Azerbaijan or Georgia. Suppliers in Turkey, in other words, have no need to panic. Trading will, however, be very much subdued this week.

SACRAMENTO/SANTIAGO. The Chilean walnut crop will soon be available on the market. However, large parts of it have already been committed.

HANOI. Excessive demand for cashew kernels has prompted suppliers in Vietnam to step up raw cashew nut imports. Shipments to Vietnam, in fact, rose more than fivefold in March over last year. Market players are, however, mystified by shipments from Cambodia. As the Vietnam Cashew Association (Vinacas) reports Cambodia shipped a seemingly incredible volume of 367,000 mt of raw cashew nuts to Vietnam in March. Problem, however, is that production only ranged at 300,00 mt. This has sparked speculations.

ORDU. As the TMO has not yet made any statement about further purchase bids until the end of this season, it appears that there...

TEHRAN. Pistachio suppliers have pulled the emergency brake in Iran. Issue is that sudden frosts in April have created enormous damage, which will certainly impact this year’s production. Although exports are performing well, prospects are rather gloomy for next season.

SANTIAGO/ATLANTA. Argentine farmers will soon begin the harvesting process. In the USA, the crop could be smaller than initially estimated.

MADRID/SACRAMENTO. The National Agricultural Statistics Service (NASS) published the acreage data for this year's US almond crop at the end of last week. These give hope for a good result.

ATLANTA. Due to the very good demand for US pecans, stocks in cold stores are significantly lower than in 2020. Some shellers even have to import RCN.

ORDU. Political tensions are tangible in Turkey's hazelnut market. Not only have relations between the US and Ankara soured after president Joe Biden formally recognised the Armenian Genocide carried out by the Ottoman Empire in World War I but the Turkish lira was also sent tumbling again. Exchange rate fluctuations may indeed spell trouble for buyers. Issue is that they are left in the dark as to the TMO's intention of intervening in the market in May. The prices on offer for this year's crop have also taken a surprising turn.

SACRAMENTO. In March 2021, the US exported 14,777 mt of shelled and unshelled pistachios, about as much as…

MADRID/SACRAMENTO. As local media report frost wreaked serious damage at the end of March. Some almond growers may even experience a total loss of their crop this year. They are now demanding financial compensation.

HANOI. The demand for Vietnamese cashews is currently very high. This usually also drives up the RCN prices - instead, they have declined noticeably.