Chia Market Update 13.06.24

The 2024 chia harvest is underway in South America, and prices have declined over the past two months. The 2023 crop yielded minimal carryover stock, and demand has been feeble. Most analysts anticipate further price drops in the coming weeks. Paraguay, the world's largest chia producer, has significantly expanded its cultivation area. However, dry conditions in northern Paraguay are resulting in low yields for the early crop.

Around 50-60% of the crop is expected to be harvested between late July and early August. This portion remains vulnerable to frost damage; however, current weather forecasts do not predict any frost in the next 2-3 weeks, which is critical for the late harvest's plant development. Barring any major climate surprises, this year's crop should be larger than last year's, likely causing a slight price drop.

Currently, the market is at a standoff: buyers are anticipating lower prices, growers are reluctant to reduce farm gate prices, and exporters are proceeding cautiously with their commitments.

via ponto international