Walnut Market Update November 2021 - Part B
If you’ve been wondering what’s been going on in the walnut market, this report is for you. We’ve compiled the latest insights from both the Chinese and American markets.
What’s Happening in China?
As the winter months arrive, we see the market becoming a lot more predictable than during the last few months for Chinese walnuts.
Walnut In-Shell Update
For in-shells, the price has become quite stable. The first purchases have already been made, which means that this season’s premium walnuts are growing scarce. As buyers purchase more premium quality walnuts, the quantity is decreasing. If certain parties are interested in purchasing this year’s top-of-the-line walnuts, they need to do it quickly.
The Xiner region walnuts have, in the past, been sold by kernels. Still, due to the change in the global walnut market, it is expected that in-shell sales will increase in the future. This year, the yield is excellent at 52%, with 80 to 90% for white kernel rates.
The Xingfu varieties are being prepared for sales to Turkey and Pakistan. The price stability indicates that the Chinese in-shell market is quite stable. However, the risk of price increasing remains as the premium walnuts become lesser in quantity.
Walnut Kernel Update
For walnut kernels, prices remain high, a direct response to the high prices of the walnut in-shells. Of course, the overall market price is still high due to the shipping crisis, as noted in a previous report.
However, the kernels, in particular, have been affected by the lack of purchase. Farmers only buy a limited amount of kernels, making the supply insufficient.
For the Yunan walnuts, we are pleased to report that they have the largest export volumes right now largely since they have the best prices to offer and a lovely white color which is appealing to buyers. This is causing prices to increase due to their big demand.
As for the northern origin walnuts, sales are doing well because of the good taste and price. However, kernels aren’t doing that well since farmers are currently focused on the Xinjiang and Yunnan varieties. The overall market conditions for the Chinese walnut market have been quite good, with more buyers entering the market, causing exports to rise.
What’s Been Happening in California?
We’ve received information about the California walnut crop, showing how things have changed since our last report.
Shipping Update
October shipments saw 73,962 tons shipped in 2021, compared to 103,816 tonnes in September 2020, leading to a 28.75% decrease.
So far, the industry reports a total shipment of 107,750 tons compared to 132,810 tons at this point for the 2020 crop.
Harvest Update
The US walnut harvest saw ideal conditions throughout the harvesting, increasing yields and light percentage throughout the reason. However, a store was reported on October 24, beating records of substantial storms in the last 100 years.
About 25-30% of the crop was still on trees during this time and had to be dried for a week before machines could harvest these crops. As a result, the late harvest was strained and included dirty shells and kernels.
Market Update
October shipments went as planned, with suppliers continuing to face shipping delays. Prices increased due to poor sales in September when there was little demand. However, it is worth noting that prices are lower than in August, so that’s a positive for the industry.
Buyers need to note that the storm on October 24 led to the lesser premium quality of in-shells available than previously estimated. So, in-shell price reflected the lower supply with sellers not willing to bring the price down. If any buyers need high-quality in-shells, it is strongly recommended that action is taken as not much is expected to happen until well past December.
