February 2021 was the second largest shipment month for Californian Walnutkernels for the month of February.
Despite the very good shipments figures of February, they still have a significant inventory that must be sold and shipped before the new crop starts.
It is also getting warmer in months ahead, so expectations are that the smaller processors will push to sell their remaining stock.
Although enough Walnutkernels are available, uncommitted stocks of Chandler varieties are limited. As the harvest starts in Chile, we expect shipments for particularly this variety to shift a bit more to Chile. Because of the ‘shortage’ of Chandlers in California, Chile is taking advantage and asking a premium for Chandlers 80% walnuts. Prices for lower count halves from California remain far below the scarce 80% counts for the moment.
The biggest problems at the moment are still the shipping issues. This situation causes many problems for California shippers who have to schedule containers several times because shipments are constantly being cancelled/rolled over.
This trend creates extra demand on nearby positions, which puts pressure on the availability on the spot.
Therefore our recommendation is to cover your needs until the new crop becomes available.