Executive Summary: January Pistachio Shipment Surge and Market Dynamics

Unprecedented Shipment Growth and Market Adjustments

• January 2024 Pistachio Shipments: American pistachio shipments in January showcased a remarkable increase, nearly 47% higher than in January 2023. This trend contributes to an overall 69% surge in shipments for the same period year-over-year.

• Inventory and Market Withdrawal: The historic 2023 crop yield of 1.49 billion has led to more processors withdrawing from the market due to considerations on inventory management, anticipating a lower crop yield in 2024. This scenario has generally driven prices up, notably for X#1 grade pistachios.

• 2024 Crop Uncertainty: With pistachio blooms still weeks away, early indicators such as reduced chill hours compared to last year hint at potential concerns over the 2024 crop size. Chill hours have a known direct correlation with crop size, underscoring the uncertainty facing the next harvest.

• Market Outlook: The combination of a record-breaking previous crop and anticipation of a tighter supply scenario is expected to firm the market, with potential impacts on pricing and availability.

Market Update and Analysis

Pistachio Shipments and Industry Pace

• Significant Growth in Shipments: The pistachio industry has experienced an unprecedented increase in shipments, with January's figures notably higher than the previous year.

• Year-over-Year Advancement: Cumulative shipments to date have outpaced last year's by a substantial margin, reflecting a strong market demand.

Inventory Management and Price Dynamics

• Processor Market Behavior: Following a record yield, some processors are reevaluating their market participation and inventory levels in anticipation of a potentially smaller 2024 crop.

• Price Increases: The industry sees a general uptrend in prices, especially for premium grades, influenced by inventory decisions and market withdrawal.

Crop Size and Climate Factors

• Bloom and Crop Size Forecasting: Current climatic conditions, including lower chill hours, signal potential challenges for the 2024 pistachio crop size, emphasizing the importance of upcoming bloom observations.

• Impact of Chill Hours: The decrease in required chill hours raises concerns about the direct impact on the forthcoming harvest's volume.

Market Outlook

• Supply Tightening: As the industry navigates through the ramifications of the previous year's record crop and the anticipatory strategies of processors, a tightening supply scenario is emerging.

• Expectations of a Firming Market: The market is poised for firming, driven by the interplay of supply dynamics and inventory management strategies, hinting at a cautious but potentially upward trajectory in prices and market stability.