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15.03.2012 Macadamias
Activity in the macadamias remains strong. It is getting more difficult to find offers for Style 4 and smaller, but we should keep in mind that it is early in the season. Most packers in Australia and South Africa first want to know how much they will get and what style spread they can expect. Nonetheless Australia seems to have booked quite some volume already at firm prices. Downward potential in this market is very limited as Chinese buyers remain very active and this is having an impact on the prices paid to the farmers. This trend is also seen in the industrial market, where demand remains strong and prices firm. Our recommendation is to book your needs at least for the 3rd and 4th quarter when you have back-to-back deals and otherwise about 50%. On the snack market a slower approach can be adopted, but also there we see the market shifting a bit. Where Europe was leading in this industry we see much more demand from new emerging markets and therefore it is in our opinion wise to have a look at your needs on snack products as well.
8.12.2011 Macadamias
The macadamia market is moving along in the same pace. Prices remain firm, but there is still fair demand and as the season is only half way not a lot is expected to change. Demand for new crop is also picking up as supply for the first months are expected to be tight especially on the pieces. For later positions (4th quarter 2012) it may be advisable to wait and get a better idea about the size of the crops.
27.10.2011 Macadamias
Not a lot has changed in the macadamia market. Prices for pieces remain high and demand strong. This situation is expected to hold till new crop arrives. On wholes we have seen more available offers as processors have almost stopped processing and know exactly what is still around. It is a little uncertain how much is still needed to keep the supermarkets in Europe running, but with Liddl having taken out the product this may only become clear after Christmas. The fortunate thing for the industry is that other emerging markets have taken bigger volumes which keeps the market in balance and some cautiousness advised. This season not a lot of changes are expected, but what will happen next year is a big question mark. Bigger crops are expected for many years now, but will it finally happen? Time will tell, but our advice remains the same for the moment which is to be covered for pieces until new crop and maybe also book the first shipments as there will be some pressure on these. For wholes it seems somewhat easier and hand to mouth buying should work for the time being. By the way for some specialized users we have an offer for small wholes for chocolate usage.
30.09.2011 Macadamias
During the last weeks we have seen some more demand for macadamias. Origin is offering their last bits and pieces of this crop which concerns mainly Style 0 and Style 1. Style 4 and smaller remain very difficult. We understood that the Hawaiian crop was more or less the same as last year which brings some relief to the US market for pieces. All in all the market is expected to remain very difficult. The main challenge for origin is to support the market with as much product (which is not a lot) as possible. Offers for wholes are available upon request as well.
8.09.2011 Macadamias
The market of macadamias is also very slow. There is some spot product available but high prices are scaring buyers away. Offers from origin are even more scarce and this situation is expected to hold till new crops from South-Africa and Australia become available May/June next year. We are still having some opportunities for some mixed containers from Kenya. Prices are available upon request. Besides that we may be able to make you some offers from spot. Our recommendation remains the same to make sure that you have covered your needs until new crop.
26.08.2011 Macadamias
There is little to be said about the macadamia market. Prices are still high and no relief is expected on the short term. Here and there some business was concluded at these high levels, but volumes were small. Demand from China is still surprisingly strong at these high levels, but again no real volumes were traded. The market is not expected to change much as origin is very well sold. The next couple of weeks are going to be interesting for the macadamia industry as the European supermarkets should enter the market again to conclude their new contracts. The question however is whether they are in the position to get sufficient supply and if so the big question is whether current prices are workable for them. We will keep you posted on the developments.
11.08.2011 Macadamias
Shipments from the various origins are taking place and finally bringing sufficient product to the market that has been short for quite some time. This was needed and gives the market a little air, but the relief is predominantly for wholes. Style 4 and smaller are still hard to get and this is making it difficult for the industrial market for further development of new products. Demand is still around, but we do not expect major changes in the price in the weeks to come as we are still in the middle of the slower period. From early September onwards, when the supermarket deals are negotiated in Europe, it will become clear whether the high prices for macadamias will be accepted. For the moment it remains recommendable to cover your needs as the crops worldwide are incredibly low.
14.07.2011 Macadamias
The AMS announced their next crop forecast. Very unfortunately they had to downsize this estimate from 35.000 mton to 28.000 mton NIS. This means that the Australian crop is nearly the same as the South African crop. Availability on world scale is definitely significantly down now. Africa is commenting that the hail damage in the north and dry weather in the South have an impact on the total crop availability. Kenya is advising their crop to be down by 15-20% at least while also Malawi has a crop problem due to drought. All together this means that there are nearly no offers available, that shipments are having delays and prices high. The macadamia industry understands that the high prices are not supporting new opportunities for the middle/long term future but unfortunately cannot change the facts. Everybody hopes that next season will be better and that sufficient supply will give better (more competitive) prices.
1.07.2011 Macadamias
The difficult situation in the macadamia market is still the case and is not expected to change in the short term. New crop seems to be slowly arriving in the market, but the majority around is still Malawi and Kenyan product. This is sold at incredibly high prices for the people who are in need. This is by the way only the case for wholes as style 4 and lower are even more difficult to find.
16.06.2011 Macadamias
The market is waiting for the new crop to arrive in the market. This might take a couple of weeks as the crop in South Africa is delayed. Australia is expected to ship more or less in time. New crop offers are very hard to get at the moment and this situation is likely to hold due to short crops in the main origins. Our recommendation, to book the product you need, remains unchanged.
31.05.2011 Macadamias
Australia: The crop in Australia is really down and therefore no offers around or at extremely high levels.
South Africa: In South Africa the delay of the crop will cause delays in shipments, but to what extent is not clear yet. Size wise the crop should be more or less the same compared to last year, but the growing interest from China for NIS may impact kernel production.
Kenya: Apparently there is about 3.500mton of NIS sitting in warehouses in Kenya waiting for the ban to be withdrawn on exporting raw seed. No one really knows if and when this is going to happen, but the problem, as we understood from the processors, with this material is that it cannot be used by any of the processors as it concerns mainly product that was picked too early. On top of that the crop was down quite a bit compared to last year (12.000 versus 15.000) causing lesser kernel production to be expected from Kenya this year.
Malawi: In Malawi the crop took a real hit. The expectation was that it was just a little bit down, but this was a little bit underestimated as the crop in particular areas is down by even 40% compared to last year due to drought.
China: A potential production from China 2-3 times the size of the current total Australian crop that was the big news reported at the annual INC conference in Budapest. This will take place in the next 5-10 years in the Northern part of China. Together with the new plantings all around the planet it is clear that people/growers still strongly believe in macadamias. The current prices are not helping the customers to have the same enthusiasm, but nonetheless it is a sign on the wall. The information of this big plantation made people wonder, but we are quite happy with this kind of news as we hope that more volume will make this market less volatile and as such for a marketer of much more interest.
Overall: All in all the market remains very firm and based on the above there is no reason for prices to go down. Therefore it is recommendable to cover your needs till at least December 2011 to make sure you will have sufficient supply. As such some may even say that covering till June 2012 is not a bad idea.
19.05.2011 Macadamias
The situation in the market remains unchanged. New crop offers are hard to find and if so at very high levels. Demand on the spot is still strong, which might become even stronger as the crop in South Africa is late by 2-3 weeks. More news is expected after the INC and we will keep you posted about the developments.
18.04.2011 Macadamias
The macadamia market is a hard one to read at the moment. Harvest is in full swing in Australia and South Africa, but so far intakes in Australia seem to be a bit down compared to their earlier estimate. Whether this has anything to do with the size of the crop is hard to say at this stage. In South Africa everything seems to run pretty good, but offers are hard to get. In the weeks to come the market should become a little bit clearer with regard to availability.
3.03.2011 Macadamias
Last week we travelled through South Africa to get an idea about the crop and the overall situation of this market. All in all a similar to last years’ crop can be expected. Levubu (Northern growing area) had quite some hail damage and is expected to be down quite a bit. Mpumalanga, which is the biggest growing area, is expecting growth based on new plantations coming into production. The Southern part was expected to show good growth as well as this area contains mainly young orchards, but unfortunate bad weather conditions has had a negative impact on their estimates. In the coming year the role of the Chinese in the South African market will be bigger than ever before. There is incredible demand for NIS and is putting a lot of pressure on the processors to procure nuts at attractive prices. Prices in South Africa are as a result very high and sometimes even higher than Australian material. Australia on the other hand is heading for a bad crop again and some rumors even say it will be below the 35.000 mton, but this is really doubtful as the latest floods and cyclone have missed the main growing areas and should have no impact on availability. All in all we are heading for a very difficult year again and it seems we have to be ready for another year with high prices. Therefore booking some volume is recommendable. Offers are available upon request.
10.02.2011 Macadamias
There is not a lot to be said about the macadamia market. There is quite some interest for inshell product already, but there is no real business done at this stage as sellers are reluctant to make any moves before knowing a little bit more about the size and quality of the crop. We are visiting South Africa in the coming week and hope to get a better picture about the situation at that stage. We will give you a update about our findings afterwards. On kernels there is also some business concluded, but buyers and sellers are both not really comfortable as the market still needs to find its feet. Are the high prices having a negative impact on demand or is the limited supply keeping the prices at these levels.
22.12.2010 Macadamias
For the moment the market remains unchanged. Firm prices and limited product around. From January onwards we will get more and more information on the crops of South Africa and Australia. This will play a major role in where the market will go. So far there has been some negative news floating around with regard to the crops in Australia and South Africa, but this seems a bit early. We will keep you posted about the developments in 2011!!
1.12.2010 Macadamias
Macadamias continue to be traded at very high levels due to limited availability. The majority of the product that is sold these days is in the hands of re-sellers. The flow of product from origin, however, will get lesser and lesser as most product will be send by January 2011. From then onwards supply is expected to become more and more difficult and this situation will hold till new crop. Latest information from Australia (still premature) is that the crop is expected to be similar to last year. Reason given is continuous rain during blooming that has affected nutset, but as said earlier it is still very early to give good indications. With regard to South Africa the only information shared so far are some hail storms which heavily damaged the crop of a couple of farmers in the Northern part. The real extent of the damage is hard to determine as these hail storms are very local and as such damage differs per farmer. From the Nelspruit area the news so far has been good. Malawi had some hail damage, but it looks like there crop is pretty much ok. For the moment we recommend cover your needs until new crop and the first shipments. After that prices might ease a little bit, but having said that this strongly depends on the impact of todays’ prices on consumption as well as the size of the 2011 crops from South Africa and Australia.
17.11.2010 Macadamias
The situation in the macadamia market remains unchanged and is likely to stay that way until new crop arrives or consumption must collapse. The stock position is currently very tight and as such high prices are paid for all available product, but it has to be said that not all prices are accepted anymore. Prices are expected to stay firm at least until first new crop shipments from South Africa. There have been some rumors about crop damage in South Africa, but so far most of the damage seems to be very local and not effecting the total crop that much. Furthermore some news has been spread about crop damage in Australia, but nothing has been confirmed. All in all it is in our opinion too early to say anything sensible about the crops. Our recommendation is to cover hand to mouth and perhaps some of your first shipments.
20.10.2010 Macadamias
Where to find them? Market is completely empty. Reports from Australia and South Africa are indicating roll overs of contracts again from 2010 into 2011 season. This is not helping the Macadamia industry which has to realize that they need to take steps and become mature to create buyers interest. As written a number of times, we need a stable market, share of information on availability and crop to inform and support buyers and developers to create new products.
24.08.2010 Macadamias
The Macadamia market remains difficult. The smaller Styles are completely sold out worldwide while the availability of Style 0 and Style 1 is still limited. The down sized crop in Australian and the increasing interest from China are the disturbing factor in the long term development of the Macadamia industry. While in 2008-2009 prices came down to (too low) levels challenging the industry to create new products, current prices might make them reluctant to continue research and development on long term. The roller coaster of the Macadamia prices should stop and prices need to stabilize around certain levels to create and support stable demand.
11.08.2010 Macadamias
The market of Macadamias remains firm. Although prices are firm, arrivals are taken in immediately and processed/packed. This means that the ‘free’ stocks available for sales in the warehouses remains tight and very limited. To keep a stable demand in the market for the years ahead, we need prices to ease as otherwise demand might fade away and the industry might lose buyers interest for some years again. Growing crops in Australia and South Africa need to find a home in the future and hopefully the industry starts realizing that this needs stability.
For the moment we recommend buyers to be covered until end of the year as remaining available quantities are limited and will probably be sold at premiums.
29.07.2010 Macadamias
Market remains unchanged. Prices are still very firm and information received from Australia is not getting any better unfortunately. It remains to be seen how the market will move forward and whether prices will result in decreasing consumption.
8.07.2010 Macadamias
Latest news is that the Australian crop will be significantly lower than the earlier anticipated 37.500 mton, around 35.000 mton. Less availability will have an impact on the macadamia market as it seems that most processors are already well sold, which could cause some difficulties for the supermarket contracts. Traditionally these negotiations will take place in September to decide in October. Prices that are on the shelf do not reflect current market prices and the question is whether the supermarkets will accept these high prices (also keep in mind the strong Usd for the European market). But even more so will availability be sufficient to close the contracts. All in all we expect the market to remain difficult and hope to give you some more details about the market shortly.
11.06.2010 Macadamias
During week 21 (May 24-29) Jaap van Oenen visited Australia to meet different stakeholders in the Australian Macadamia industry. The meetings were very good and have shown that slowly but steadily the awareness grows towards an international industry that needs to work together to reduce the highs and lows with regards to prices. Secured supply for the customer is the key, but also a very complicated issue to overcome by the industry. One of the major difficulties which is hard to understand for buyers is the difficulty of accurate crop forecasting. The Australian Macadamia Society (AMS) is working hard to get all their data up to date as this was lacking a little bit. We have discussed this issue with various farmers, but all say it is not easy to judge how big the crop is going to be. Opinions in Australia vary from 33.000 till 40.000 mton. By the end of June AMS will release a new estimate, which should give an accurate idea of the crop size. Anyhow the situation in the macadamia market remains unchanged as there are nearly any offers available. Processors in Australia and South Africa seem to be well sold and are reluctant to make additional offers. This on its own is worth compliments as this shows responsibility and prevents the market of being short on product later during the season. On the other hand however this causes prices to remain firm. Recently this has caused promotions and new macadamia products to be cancelled as the risk of low availability and high prices is making buyers and R&D departments very reluctant. This situation is very negative for the macadamia industry as the market needs product development as bigger crops will come over time and the road to introducing a new product is time consuming. Key decision moment in the European market will be in September/October as the new supermarket contracts that will be negotiated. In short the market is very uncertain and is waiting for more news about the crop in Australia. Until the moment the processors have a better idea of their intakes the market will most probably not see much activity.
29.04.2010 Macadamias
As expected the Australian Macadamia Society (AMS) came with their first official estimate for the 2010 crop with the header “orchards recover but no bumper crop”. Based on the AMS forecasting model a crop of 41.600 mton of inshell is expected. This would mean an increase of 10% compared to the disappointing crop of 2009, which was only 37.500 mton. This news might relieve the market a little bit as the only trend we have seen in the past months is upward due to an imbalance of supply and demand. The effects of the physical shortage on the long term for mainly style 4 remains to be seen. One thing is for sure that product developments have been hit again due to the rollercoaster ride called the price development of the macadamia. Enquiries for kernels and NIS are still present in the market, but supply remains very tight keeping prices firm. During the End of May we will visit Australia to check how the intake of product is progressing. The South African crop is coming in and seems ok. The Malawian crop has finished and was smaller than earlier anticipated due to weather conditions. Processors are withdrawn from the market. The ban on the Kenyan NIS exports is causing quite some disturbance in the market as the NIS interest of China shifts to other origins like South Africa. For the kernel market it means that more Kenyan product will be around. We are a bit uncertain about the impact on the quality and hope the international standards will be presented shortly in order to prevent the market to be flooded by low quality product. All in all an interesting market where coverage of Style 4 is recommendable for the whole season. Style 1 requirements until at least October should be covered and for later positions partially.
14.04.2010 Macadamias
The situation in the macadamia market remains unchanged. The shortage in the market is causing difficulties with customers and it is the question what the long term effect of this shortage will be.
31.03.2010 Macadamias
The macadamia market remains unchanged for the time being. All processors are waiting for the crop to come in before making additional offers. We will keep you posted about the developments.
17.03.2010 Macadamias
The situation in the macadamia market remains unchanged. Buying interest is still around, but processors are hesitant to offer due to the knowledge of last year where the market ran short dramatically. Processors are waiting for more news about the size of the crop. Rumours in the market indicate a crop around 37.500 mton in Australia and a somewhat bigger crop in South Africa in comparison with previous year. The relatively small crop expectation in Australia is a result of the low prices we have seen last year and as such farmers have taken less care of their plantations. Again this is information received from origin, but is all very uncertain as crop physically still needs to get in. High prices are expected to have a negative effect on macadamia consumption in the long run, but can be maintained for the moment as customers are short.
4.03.2010 Macadamias
The market of Macadamias is confusing. There is still demand although prices are very firm. Confusing news on the crops in the origins are making buyers nervous but we all have to understand that the current prices are scaring away product developers and R&D departments as Macadamias are becoming too expensive to work with. It will probably work for 1st half season but to generate interest again 2nd half this season/next season prices have to drop significantly as prices otherwise will not be accepted.
16.02.2010 Macadamias
The macadamia market is currently fairly quiet. There is still some interest for first shipments but processors are not too keen to offer as they are heavily committed for the first shipments due to rolled over contracts. Therefore the market is now waiting for some news from the origins. Until that moment the market will continue to be firm.
28.01.2010 Macadamias
The Australian and African crops are developing well and demand on first new crop shipments is (remains) strong due to physical shortages nearby/SPOT.
First indications from Australia are getting in the market, prices are amazingly firm. For the first shipments it is expected that firm prices will be accepted, but this situation could have a very negative impact on the later positions. Too high prices might reduce demand, i.e. consumer usage, causing negative effects on later positions and even result in a big carry-over of 2010 crop as the total available kernel volume vs (dropping) demand would result in unsold positions at the end of the 2010 season. This risk might influence the market at a later stage.
For the moment high prices are expected to hold, but for as written for new crop it is expected that prices will go down for later positions (October 2010 onwards) when all rolled over contracts from 2009 into 2010 and new first shipment needs have been delivered.
8.01.2010 Macadamias
Availability remains a problem in the macadamia market. Demand seems to be picking up, but still limited as people are waiting for news from Australia and South Africa about the new crop. This news will not change the situation of the first shipments as product will be scarce by then, but will definitely influence the later positions. Our recommendation is to make sure that you will not run out of product, but don’t take a position for later positions as prices are expected to ease.
22.12.2009 Macadamias
It looks like the Macadamia market is already enjoying the Christmas Holiday as there is hardly any activity in the market. Where the last weeks have been busy with fair business done to secure product for the first months out of new crop. As such our recommendation remains the same; make sure that you are covered for the third quarter and take partial coverage for later positions.
8.12.2009 Macadamias
There is still quite some activity in the market and as such the market supports the higher prices. This support is mainly for the first shipments out of new crop and partly for later positions. The latest news from Australia with regards to the crop is a bit more positive and this is having a positive impact on availability, but as there is no carry over this has no impact on the first shipments. Later in the season it is expected that there should be more product available. For the moment it is recommendable to cover your early positions and partly cover your later positions.
27.11.2009 Macadamias
The macadamia market remains difficult. Demand is still there although it seems to be softening a bit. Prices if found are still firm. New crop from Australia and South Africa is progressing nicely although there was some news from Australia that the flowering might have overstressed the trees which resulted in a disappointing nut set. A first indication for the Australian crop is about 40.000 mton, but to be honest it is very (too) early to make any proper estimations. Anyhow the main interest at the moment is for new crop material and if needed we strongly recommend to take cover for the first few months of new crop as supply will be tight for the first months. For later positions it remains to be seen, but it might be advisable to take partial coverage for the later positions.
11.11.2009 Macadamias
The macadamia market is hard to read for the moment. A good nut set, followed on a very promising flowering period, was a little bit disappointing and a reason for buyers to cover some of their requirements. Although demand is around for 2010 crop, sellers are a reluctant to sell early positions. They are worried that they might not be able to ship according commitments and get claims as the market will be really empty on first shipments of the new crop and that buyers will be pushing for their goods. As new crop in Australia and South Africa is looking good, we expect prices be more interesting for August/September 2010 shipments onwards but having said that we also have to realize that due to empty pipelines the price discounts might only become available by the end of 2010.
30.10.2009 Macadamias
During September the first flowering stage looked very promising in Australia and South Africa. The latest news however is that this unfortunately wasn’t followed by a great nutset. Farmers reported that the nutset is average to just below average. Obviously it is still very early to make any forecasts on the 2010 crop, but the sentiment of a very big crop coming next year is a little bit tempered. We will visit south Africa in a week and will keep you posted on the further developments.
In today’s market availability remains an issue and this will most probably hold till well into the 2010 season. Prices are firm at the moment, which has an impact on demand. For the moment demand is not an issue for the macadamia suppliers as they had to roll contracts into 2010, which already means a fairly full order book for the first shipments.
16.10.2009 Macadamias
The uncommitted inventory is nearly zero. There are probably some bits and pieces around but this will be mainly for smaller styles and sizes. This tight position will also have an impact on what will happen next year, but in what sense? The first information about the development of the crops of 2010 in South Africa and Australia look promising, but it is very early to make any reliable forecasts. Good crops would under usual conditions result in lower prices in comparison with today’s prices. But this is very closely related to the demand as well as to the carry-out. Demand has been strong and new projects have been launched. This is also needed for an industry where growing crops are expected. Due to this and the disappointing 2009 crops the carry-out will be very small and mostly in difficult selling styles . This will most probably result in high prices for first new crop shipments. Later during the year prices should ease again, but whether this will happen is depending on what the industry has in mind. Our recommendation is to cover for first shipments and take partial coverage for later positions. Our recommendation for the industry is to keep prices at reasonable levels as the increase in demand is needed to make sure that a solid growth in demand is stimulated to market the additional product in the years ahead.
1.10.2009 Macadamias
The market for Macadamias remains difficult. The main origins (Australia and South Africa) are nearly sold out and busy to get shipments out in time. Due to increasing interest, the industry is facing a shortage of product, which pushes prices up to –as far as we believe- unrealistic price levels for current unsold stocks but also for the 2010 crop.
Whenever one needs to buy some product out of this crop, better do it sooner rather than later. Probably also cover a certain % for the new crop. Prices might go up even further and we do not know when and to what levels it will come down to afterwards when the 2010 crops will become available in the market.
18.09.2009 Macadamias
As written in our previous market report we would update you about the developments at the International Macadamia Symposium, which was held the last week in the Kruger Park in South Africa. A wide audience attended this event and the meetings were fruitful. One of the big topics was the current situation in the macadamia market where the disappointing crops in South Africa and Australia have caused some difficulties on the supply side. The problems are predominantly for the Style 4 material, where the biggest increase in demand was realized. This is very unfortunate as all expectations assumed a good crop from most origins and a first step would be made to coop with the increasing crops. Based on these problems the industry was well aware that a change is needed, but the question is what is the best route to take. In the marketing meeting about forming an international macadamia organization (IMAC) all attendees confirmed the need of such a body to make sure that the future can be approached with faith. The main goal of this body will be to create a premium product in the nut range, which will create more profitability for all involved in the chain. The industry understands that a first step needs to be taken by the farmers and the processors and therefore a working group has been formed with the task to clearly address what the role will be and how it will be organized. By the end of the year this format should be ready from where things will be taken. We as Global Trading sincerely hope that it will be supported by all origins and finally be appreciated by all involved in the chain. Our vision is that securing supply, supplying quality product, creating relative stable pricing and giving sound market information will help the whole industry i.e. buyers and sellers to make a good living out of this and customers to have the chance to experience the taste and health benefits of this fabulous nut.
21.08.2009 Macadamias
The macadamia market is currently the most active market from a buyers perspective, but no real business is taking place as no offers are around. It seems that Australia and South Africa are completely sold out, but we hope to have a clearer view on the situation after the International Macadamia Symposium in South Africa, which will take place from September 6 till 9.
15.07.2009 Macadamias
The crop in Australia definitely is down from earlier crop forecasts (first indications were as high as 43.000 Mton). The exact size is not 100% sure but rumors are indicating a crop between 30-35.000 mton. The South African crop was suppose to grow again 10-15% but the indications at the moment are that the crop will be comparable or down in comparison with last year with various yields reported (from stable to down % wise). Furthermore, other producing countries seem to struggle to make the forecasts as well.
Those facts are not helping the market as most processors have a hard time to fulfill their commitments in time. Most sellers have committed based on the expected growth figures, obviously all falls short right now, hence the firming prices.
29.06.2009 Macadamias
The market is currently going crazy due to continuous demand, especially for early positions, coinciding with disappointing news from the main origins Australia and South Africa. Rumors in the market say that the crop in Australia is considerably down even going as low as 32.000mton! If this is really the case we definitely will face another difficult year. It is already causing difficulties for suppliers to fulfill the early shipments. It is now the question whether they will be able to fulfill the later positions due to a reduction in raw material being brought to the factories. All in all it is a very difficult situation and prices will remain firm and probably go even firmer. It is hard to make recommendations in this market as the delay in shipments is causing troublesome situations for buyers.
3.06.2009 Macadamias
The macadamia market has been very active lately. During the INC convention, where we spoke with many stockholders of the macadamia industry, it became clear that a lot of suppliers are very well sold. Reason for this sudden activity was caused by prices coming down quite a bit due to the expectation of growing availability worldwide. This drop in prices finally caught the interest of buyers resulting in a real hike. After selling quite some volume Australia faced some bad weather and South Africa receipts seem to be down to expectations. The real extent of the floodings in Australia are not clear yet, but a loss between 10% and 20% is what is expected. In South Africa the crop is delayed, but should still be bigger than last year. The main question is how many NIS have been/will be shipped to China causing some shortage. All the above results in a very tight supply and demand situation. We strongly recommend to cover your nearby needs if available and also cover the necessary for later positions. We will keep you posted about the developments of the damage of the crop in Australia.
15.05.2009 Macadamias
A lot of business has been concluded during the past weeks. Factories are very very busy and running full speed to match customers demand on shipment. Most buyers are short of product and need their contract to be shipped immediately which is putting even more pressure on the factories. Most processors are well sold for May, June and July shipments and have a satisfying cover in their books until the end of the year. Prices are going up and during the last week we have seen prices moving up by approx. 5%. Our strong recommendation is to cover your needs to avoid delivery problems later this season.
23.04.2009 Macadamias
The macadamia market is facing a challenging year, but it must be said that it started promising as there has been good demand from all markets during the past couple of weeks. Before this, prices went down a bit and became very attractive. When demand entered the market prices stabilized and it seems that levels have reached the bottom for the moment. News from the origins about the crops are coming in and it seems that most crops will be growing. Latest update received from Australia is that they expect a crop of 42.000mton of NIS. This is quite a bit more than last year when their crop was about 35.000 mton. Carry over however will be close to nil and current rains might delay crop. South Africa expects about 15% increase in crop, but it is still a bit early for accurate figures. All in all there will be enough product around, but prices are at attractive levels and therefore we advise to have a look at your needs and take some coverage. Prices and more information are available upon request.