Although we are still awaiting the June shipment report from the California walnut board, remains the sentiment in the market unchanged. Availability of walnuts until new crop is tight, which is keeping offers on both origin as spot bases firm. In the meantime some disturbing news about potential sunburn of the new Californian crop is making its way through the market. The low availability of walnuts on a global scale is also having its impact on the export position of China. Whereas demand from export markets is normally weak during this time of the year, are Chinese suppliers still reporting new enquires from abroad. Although most suppliers are not able to deliver at the moment, is the extended demand for Chinese material an interesting development. There are different opinions on the development of the new crop in China, but overall we note some worries about frost damage in two of the four main growing regions. As such, it remains to be seen if China will realize the expected growth of 100.000 MT inshell bases, as published earlier this year during the INC online conference. Chili, the most recent crop at the moment, is not brining relief to the market either. Prices from Chili are still on a rise, while availability of proper (hand cracked) halves is depleting rapidly. Although all growing regions are making a lot of noise, it is still early to draw real conclusions on the coming crop already. When it comes to short term needs a relief seems out of the question, coverage for nearby positions can be advised.
