Almond Market Update January 2022 Week 3

Prices for the STD5 varieties fell slightly in the global market this week, ending on Tuesday. In the meantime, in-shell and most kernel varieties continued to fall even further.

This week, in particular, there has been an increase in sales of STD5s with 24 reported trades compared to last week's reported trading of 15. It has been reported that the prices for the trades were between $1.83/lb FAS and $1.85/lb FAS. 

Several other deals were also reported for March to July 2022 shipments as well as August (though it is still quite early for that) at the price of $1.87/lb FAS.

Demand Side of Things

European demand for almonds continues to be short-term, keeping shipments in mind as the increase in shipping congestion has led to delays in the market. Also, it is worth noting that several market sources are being cautious due to the price decline in hopes of attracting buyers who are in no rush to stock their inventories.

Many traders have been actively buying, taking full advantage of the decline in prices. Meanwhile, in California, the shipping delays are further affecting sales of premium almonds, especially for the European markets which are now well-covered, with plenty of inventory.

With global almond prices softening recently, explanations of factors driving the decline have focused on supply and California's deeper unsold position relative to previous years. We will keep you informed as the situation progresses.