Walnut Market Update 09.02.24
January marked the second consecutive month of robust walnut shipments from California. Despite a record production of 820,966 tons, the remaining marketable supply now lags behind last season's figures. California walnuts continue to be esteemed for their value, with attractive pricing and high quality garnering positive reception from buyers who are securing additional supply.
In recent weeks, the market has remained stable and firm, with buyers showing reluctance to pursue higher prices given the abundant supply of walnuts from various sources. As warmer temperatures approach California, smaller growers are expected to sell off their remaining inventory. While shipments and demand remain strong, the availability of product is ample, which will likely constrain short-term price increases.
Early indications suggest a smaller crop from Chile due to an irregular bloom. However, any shortfall from Chile can be compensated for by marketable inventory from California. Although the first shipments of inshell Chandler aren't scheduled until May, opening pricing during the traditional start of the Chilean marketing season, typically around the Gulfood exhibition, is anticipated in the coming weeks.
Positive momentum is evident in the walnut market, with sellers gradually raising prices and mitigating losses at the grower level. Buyers are benefiting from both good quality and attractive early purchase pricing, stimulating demand. A stable market is foreseen going forward, with a more manageable carryout expected.
- Inshell walnut shipments were 48.9 million pounds for the month of January, an 88% increase in comparison to January 2023.
- Shelled walnut shipments came to 57.7 million pounds during January, which is an increase of 2% compared to the same period last season.
- Total season-to-date shipments are at about 406,000 inshell equivalent tons, a positive trend of 82,000 tons from last season's period.
via Derco Foods