Almond Market Update October 2021

The weather in California has remained hot and dry with forecasts revealing a continued trend for the next seven days if the drought persists. The wind direction has changed once more so air quality has become poor. Fires continue to burn in the Sierras however, the main route connecting Sacramento and Lake Tahoe has been opened. This will definitely help control the fires.

Shipment Updates

Shipments have been doing well with the August shipments setting another monthly record at over 14 million pounds, a 7.4% increase from last year. Export shipments continue to increase by 10.8%, while domestic shipments grew by 1% from the previous year.

Of course, it is important to note that there is continued restraint from the growers as commitments for next year’s crop has dropped. Early harvest indications are also showing kernel sizes predictably smaller as well. 

What To Expect?

Despite struggles with transportation worldwide, demand for almonds remains high with there being an increase in exports rather than a decrease (which other industries have seen due to the container crisis). Considering the record shipments the industry made last year, this shows increased consumption and increasing market penetration.  Higher price levels have come from increased demand/lower supply and have stabilized, while remaining lower than what we have seen historically.

However, there is still time to go, and crops have been seen to get better as the harvest continues.  This includes a possibility that more pr