Walnut Market Update Week 35

The Northwest China origin is blocked by COVID-19, and with it, the purchase plans of most factories have been affected. Because of COVID, the farmers' contracts have not been implemented yet either. Walnut fruits are to be picked up next week. If the government does not do anything about it and the COVID-19 control, there will be delays in the new crop.

In the previous year, many suppliers had signed orders at low prices at the beginning of the new season. This led to suppliers losing their money, so this year, they are very cautious about the market trends.

There has been a new trend in the market. Since China's walnut harvest has been enormous this year, farmers are not willing to sell at a low price. Furthermore, there is a huge demand in domestic markets. The cost of the new crop is expected to fluctuate. 

The California Walnut Crop estimates have been released today, reporting 720,000 metric tons. With crops based on 400,000 bearing acres and last year's crop at 725,000 metric tons, yield is expected to be 1% lower than the previous year.

Since July, the industry has expected the harvest to be 780,000 to 800,000 tons; unfortunately, it is at the lower end of the prediction. During the past few weeks, both suppliers and buyers have been active in moving competitive and aggressive levels. This coming weekend, California's growing areas will be experiencing temperatures of between 110 to 1111 degrees Fahrenheit. It is expected to affect the overall quality of the crops, but we shall have to wait and see.