Almond Market Update January 2022 Week 4

The month of January has gone by as one of the driest months in recent history. There has been no rain or snow this month, causing concerns since the almond bloom is right around the corner. To make matters worse, extended forecast calls for a dry season beginning in February. We've been seeing lows in the high 30's and highs in the low 60's in the afternoon. 

If the weather holds, it will be great for the bloom, but California needs more rain to ensure that continued agriculture is possible. It would be much preferred to have a wet season rather than the perfect bloom.

Beehives have started to be delivered to the orchards, so an early bloom is expected to begin in some areas in the next ten days. 

Market Update

Due to the positive report received a couple of weeks ago, January interest continues to build, with market sentiment settled to a point where both buyers and sellers have now begun participation.

As expected, shipping problems continue as the logistics and freight issue shows no signs of improvement. A new strategy is required for longer lead times before orders can be shipped.

On the supply side, crop receipts are expected between 2.85 and 2.95 billion pounds. Supply pressure continues to create pressure on shippers; therefore, there has been a carry-over of more than 850 million pounds this year.

Overall, demand remains strong and is only interrupted by freight issues. Participants will have to find ways to minimize the issue and keep the supply chain running.