Almond Market Update November 2021 Week 2

Good news, the weather in California continues to improve as November sets in. There have been a few more rain showers in the past week, encompassing most of the almond growing region. 

Notably, there have been no large storms like we had seen in October- not that there are any complaints. Any rain is appreciated as long as it gets California out of its extreme drought status.

Reaction to the October Shipment Report

Of course, by now, everyone has been talking about the Almond Board of California's October shipment report. Shipments have been disappointing this month. There has been an overall decline of 30%. Of course, this is due to the drought and the shipping crisis that has plagued the global market since 2020. Not much can be done about this.

It has deterred suppliers from committing to sails, and the drought has helped make any farmers feel better about themselves. All major numbers were off. Expert values were off by -35.6%. Shipments were off by another -18%. However, with little end in sight, there's no quick solution to this problem.

Market Conditions

This week the prices of almonds fell to 16 cents/lb in the global market, largely due to the October 2021 position report.

The decline in domestic and export shipments was enough to put off buyers, causing there to be commitments far below last year, and a lower-than-normal sold position.

Conclusion

Prices are expected to continue to decline, with lower shipments to report in the upcoming weeks.

Overall exports this year have been disappointing, with shipments falling by 48% by European bound ships and 14% down for shipments to China. However, we will have to see what happens to understand the market situation. Catch us next week with more updates on this developing situation.