The almond market has been experiencing significant upward movement since the release of the last Position Report. The lack of availability in the current crop is driving this trend, affecting both current and new crop prices.
Market Dynamics
- Current Crop Availability: The market has been seeing a scarcity in current crop supplies. This has led to increased prices, especially for specific grades like CTS (California Type Supreme) and NPX (Nonpareil Extra), as well as for smaller sizes.
- Customer Demand: There are notable gaps in customer coverages, leading to limited offers and heightened demand.
- US Packers’ Position: US packers are exercising caution regarding current crop offers. They prefer to wait until they have a clear picture of available supplies. With new crop prices on the rise, packers are also hesitant to make new offers. This strategy is understandable as they aim to maximize revenues after a period of selling at or below cost.
Looking Ahead
While the current situation is challenging, there is an expectation that almond supplies will increase in a few months. However, for the time being, packers are focused on optimizing their earnings from the current market conditions.
Key Date
The USDA-NASS is set to release its second production estimate for the 2024 Almond Crop on July 10th, 2024. This report will provide crucial insights into future market trends and availability.
We will continue to monitor the situation closely and keep you updated with any significant changes. We look forward to your inquiries and are here to provide any further information you may need.