Chilean Walnut Market Report, November 2022

Shipments up to October 31st are 140.706 tons in-shell basis, 5% higher than the same date last year.

Turkey has again become the main destination with 23.078 metric tons in-shell basis, representing an increase of 19% compared to last year, mainly explained because of the competitive prices that Chile has had in the last few months and the quality problems California has as a consequence of the summer temperatures. India is in the second position
with a 10% increase and Italy in the 3rd.

Shelled walnut shipments have increased 7% compared to the previous season, with an 89% increase in Holland, a 19% decrease in Germany, and a 14% increase in Spain, which is in the 3rd position.

Commitments till October 31st are 90.7%, with limited volumes available. Due to lower prices, problems with the quality in California, lockdown in productive areas in China affecting the transit time and mold problems in part of the production and decrease in exports from Ukraine, we forecast that soon Chile will be sold out and with no carry over for next season.

California’s forecast for the crop 2022 is 1% lower compared to the crop 2021. “In California, the talk of the industry is regarding quality and color. The 2022 crop suffered heat damage across all growing regions and varieties. Nevertheless, the Chandler harvest appears to be up in terms of total tonnage. The result will be an eventual shortage of light kernels or high-quality in-shell and an abundance of combination or light amber-colored kernels. The buyers already see darker-colored kernels priced at or below the cost of harvest and processing/packing (not counting the cost of farming). Buyers and sellers of in-shell walnuts are being careful and providing full disclosure about the color, as even “light” walnuts are a
a shade darker than most seasons” mentioned Derco in their November market report.