Pistachios: Covid-19 has surprising impact on prices
March 25, 2020 at 12:57 PM ,
Der AUDITOR
Exports decline sharply
Export demand has come to a complete standstill. As the most recently issued customs data shows, overseas shipments have declined sharply between 20 February and 20 March. As market players explain the decline cannot be solely attributed to the global spread of the coronavirus pandemic, but rather boils down to financial issues and the FATF blacklisting of the country.
Ironic twist in Iran
Although market sentiments are very bleak, the prices have been surprisingly volatile over the last two weeks. The Iranian New Year and nutritional guidelines stating that people should eat more nuts during the pandemic have given the domestic market a boost in the run up to 20 March and have also driven up the export prices for most varieties. Spot market prices in Europe currently range at EUR 8.30 per kg for Akbari pistachios, size 22-24 NO FCA Spain.
Traders are, however, anything but optimistic. Despite the boost the domestic market has received, it should be noted that demand in the run up to the Iranian New Year ranges lower than last year. Although the prices for pistachios range much lower than last year, meaning that the nuts have, in theory, become more affordable for a larger group of people, measures in place to contain the virus are prompting consumers to desist from buying.
Pistachios, Iran |
|
Type |
EUR/kg |
Ahmad Aghaei, 22-24 |
7.29 |
Ahmad Aghaei, 24-26 |
7.02 |
Akbari, 20-22 |
7.36 |
Akbari, 22-24 |
7.09 |
Kale Ghuchi, 22-24 |
7.16 |
Kale Ghucci, 24-26 |
6.89 |
Fandoghi, 30-32 |
6.10 |
Fandoghi, 32-34 |
5.90 |
FOB Iran |
US exports decline by 25%
US exports have also declined by nearly 25% since the start of the season. As 2019/2020 is an off-year US in-shell production ranges at 331,000 metric tonnes. Production in 2018/2019 ranged higher at 451,000 metric tonnes. Total overseas shipments range at 106,888 metric tonnes this season so far. A bumper crop is, nevertheless anticipated for this year.
US pistachio exports* in mt |
|||
Destination |
2018/19 |
2019/20 |
Diff. |
Europe |
37,343 |
30,754 |
-18% |
Asia/Oceania |
80,361 |
57,864 |
-28% |
Africa/Middle East |
16,929 |
11,226 |
-34% |
Central/South America |
644 |
634 |
-2% |
North America |
6,202 |
6,409 |
3% |
Total |
141,479 |
106,888 |
-24% |
Administrative Committee for Pistachios *since the start of the season |
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