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Macadamias October 06, 2016

The situation in the macadamia market remains unchanged. There is currently a shortage on style 1 and style 2 and this situation is not expected to improve. There is quite some demand in the European market for spot material, but positions are tight. For ingredient grades there are still offers around and buyers are not really in a hurry it seems. The overall outlook is that also for these grades it is recommended to have a look at your positions, because high quality product will be tight. Some South African factories are already done processing for the season as they received way less product. This might have its consequences for total availability later on.

For new crop the first signs are very promising from South Africa. The flowering is exceptional in the Southern and Northern growing areas, but the question is whether the water levels will allow this to turn into nuts. In the Southern area this looks more promising as they had decent rains over the past weeks giving them quite some confidence. The growers in the north are keeping their fingers crossed as the rains are very little and the waterholes still at low levels. We will visit South Africa and Kenya in October again and hope to be able to have a better view on the outlooks.