Walnut Market Update December 2021 Week 51
The walnut market has been quite active recently. With new reports coming out, there have been quite some developments that need to be considered this week.
The Moldova Market
In Moldova, prices for both in-shell and kernels in bulk rose by $0.16-0.39/kg in mid-December. The Union of Moldovan Walnut Growers’ Associations believes in stabilizing the maximum price levels for high-quality walnuts (in-shell and kernel) since they indicate that traders are not making any large purchases.
Most purchases have been made, with American and French varieties already being sold for the year on previously made contracts. This isn't anything to worry about since the walnut market is quite inactive from December to the second half of January.
The US Market
There is now a better understanding of the 2021 Californian crop. The makeup of the walnuts is different due to the rains that occurred due to the harvest that have altered physical traits of the harvest. This has reduced the number of available products for export, but demand is expected to slowly increase over time. By then, there will be plenty of crops available.
For the American walnuts, in particular, one of the main key issues faced when trading is the logistical challenges. It's been extremely challenging to predict when the crops will be delivered, and this is a problem that will continue well into the foreseeable future.
On the plus side, there are slightly higher than expected crop receipts, and the sluggish demand has led to prices falling in the past few weeks.
The variety of light and combination crops will continue to grow as more light amber walnuts become available. The low price will definitely drive more demand in the coming months. As demand improves, there will be more stability in prices. Since the 2022 Chilean crop is just about to hit the market in the next few months, this too will determine quite a bit about what will happen in the market in the coming future. We will keep you updated as we get more information.
