OfBusiness Nuts Dailies

24^th May’23

Price

• Cashew prices are still high with W320 at approximately Rs.605/kg and W240 at around Rs.705/kg.
• Almond prices have remained stable since last month, with NP 27 to 30 count size selling at approximately Rs.590-600/kg.
• Pistachio prices have remained relatively steady in the past few days, with California 21-25 Inshell priced at approximately Rs.830-835/kg.

Demand and Supply

• Imports from Africa affect cashew demand, strong kernel demand, and reduced production may limit availability.
• Smaller crops, strong shipments, balanced supply/demand, Ramadan boosts Almond demand, potential slowdown this month.
• Steady demand for pistachios exists in markets such as India, China, Europe, and America. Uncertain demand pattern, impacted by poor California weather.

News

• Due to the high prices of raw cashew nuts (RCN) and significantly lower shell realization compared to last year, an increasing number of processors are shutting down their factories due to the imbalance. However, there has been a recent 3% increase in kernel prices, indicating a bounce back.
• For Almonds, California has experienced prolonged poor weather conditions, with over 78 trillion gallons of rainwater in the past few months. While some tree blooms remain, pollination is mostly finished, and petal fall has begun.
• The supply of Iranian pistachios is beginning to stabilize, indicating future market stability. Currently, the market is predominantly influenced by the supply from California. However, the expected full flow of supply from Iran in the near future will bring about stability.

OFB’s Opinion

• The global nut market has experienced significant volatility recently due to weather conditions in California. Initially, the conditions seemed favourable for pistachios, but recent flooding in the Tulare Lake basin has raised concerns.
• The almond market has also been affected by a smaller harvest and uncertainty about the new crop’s supply. As a result, market levels have strengthened, at least for now.