Walnuts, Market Report July 2023
The walnut market is looking positive for the 2023 crop year. The carryover is expected to be smaller than the previous season, and the crop on the trees is in excellent condition. The Chilean crop is also largely committed, meaning that there will be little Chilean inventory available in the market when California begins harvesting. This will create a favorable supply and demand situation for California walnuts.
In the 2022 crop year, the California walnut industry faced a number of challenges. The crop was smaller than expected, and the quality was subpar due to drought conditions and heat damage. This led to lower prices for growers. However, the industry has taken steps to address these challenges. Orchards have been removed, and the 2023 crop is expected to be the first time in recent history where bearing acreage is lower than the previous season. This will help to reduce the supply of walnuts and improve prices for growers.
The walnut market is also facing some positive trends. Demand for walnuts is increasing, and the industry is working to expand into new markets. The USDA has also been providing support for the walnut industry through Section 32 purchases. This has helped to stabilize prices and ensure that there is a market for California walnuts.
Overall, the outlook for the 2023 walnut crop year is positive. The supply is expected to be smaller, the crop is in good condition, and demand is increasing. This should lead to higher prices for growers and a more stable market