| Last weekend we’ve seen major storms in California, especially in the North, where most walnuts orchard are situated. The strong winds and heavy rainfall lead to a lot of walnuts being stuck in the wet field, while the heavy equipment was not able to go into the muddy orchards to collect them right away. It remains to be seen what the impact of this event will be, differing from orchard to orchard. The main impact seems to be for the Chandler variety, some expect that 20 to 30 percent of this variety might be affected by the storm, leading to lower quality and quantity due to affected and wasted product. Whereas we saw some cracks in the price front of California walnuts last weeks, are the lower offers no longer available anymore, giving the market a firm tone again. In the meantime sea freight remains an issue for California as well, keeping the spot market firm as well. The situation in Eastern Europe remains stable, with a lot of pressure on filling the contracts for the traditional Christmas needs. There seems to be some uncovered demand but low availability for nearby positions, which is preventing the market to slip on the short term. |
