December Walnut Market Report

In December 2021, we saw Californian crop receipts by 21,146 tones, totaling 691,146 tones. Estimated marketable supply as of December 2021 was 531,668 in shell tones. This exceeds the total marketable supply of 2020 by around 15,000 tones. Looking at the current position across the industry, despite a smaller 2021 crop and slower shipments to date, the remaining supply to market during the remainder of the crop season is almost identical to December 2020.

In Shell Shipment figures:

• North America - down 24.3% season to date and 57.3% for the month of December
• Europe - down 12.9% season to date and 10.9% for the month of December
• Middle East/Africa - down by 57.3% season to date and 55.9% for the month of December – Lower demand being driven by large purchases from the 2021 Chilean crop, high opening prices in Cali, and aggressive pricing and a large crop from China
• Asia/Pacific Rim - down 80.8% season to date and 88.8% for the month of December. The biggest driver of this figure is India which is down 93.1% season to date
• Shelled Walnut shipments were 45.7million pounds for December, a decrease of 5.3million, down 10% compared to December 2020
• Season to date shipments are 165.8 million pounds through December, a decrease of 12.3 million pounds, (7%) compared to 2020

Shelled Shipments:

• Total shelled Shipments were 45.6million pounds for the month of December, a decrease of 5.3 million pounds (10%) compared to Dec 2020
• Season to date shelled shipments are 165.8 million pounds through December, a decrease of 12.3 million pounds (7%) compared to 2020
• North America is down 8.3% season to date and 9.7& for the month of December
• Canadian Shipments were up 13.3% over December 2020
• Europe is up 10.4% season to date and 8.7% for the month of December
• Middle East/Africa down 48.5% season to date and 48.5% for the month
• Asia/Pacific Rim is down 2.6% season to date and 9.5% for the month of December – Japan up 63.2% season to date

Summary:

The December shipment figures from California show a negative picture for the whole industry. The total demand for inshelled and shelled Walnuts has fallen resulting in lower shipments to most major markets. A slow demand has enabled prices to fall from opening levels down to similar levels seen in 2020. 2021 crop is approximately 85,000 tones less than 2021 crop. Season to Date shipments are down by around 75,000 tones. Pricing has from very high levels, now back to nearer those seen in 2020. The fact shipments are down shows us that the supply to most major markets is low buyers will need to start purchasing again in the very near future to replenish their stocks. We’re all aware of the major logistical situation around the world, and this will continue into the foreseeable future. This in turn will further increase shipping costs and shipping times. 2022 Chilean Walnut crop offers are expected to begin in the next month or so. A good crop is anticipated as weather has been relatively good.