• Brazilnuts October 19, 2018

    Riberalta experienced heavy rain last week causing some flooding, this is a little earlier than normal but as rains have now stopped its nothing to be too alarmed about (yet..).
    This year whilst factories may wish to start early once again with raw material at such low levels collectors will not be as incentivized to enter the jungle and start the collection and may actively delay until a more sustainable price is agreed.
    2018 Exports are showing 23% growth against the previous high for the same period. This growth is explained by the strong shipments earlier in the year alongside the dramatic growth in demand from Korea who know have had exported to them more than 6,000MT. In a normal year this is more than the total exports from Peru and Brazil. Demand from Korea has been falling since July as the local market make their way through the higher priced stock. Interestingly an increase in price could improve demand from Korea again as importers will be more willing to purchase.
    As before the key question remains will current crop run out before the new crop arrives? It’s clear factories are shut and many are sold out of the season but a few remain with limited stock to sell. The start of the next crop is also unclear so it’s worth watching the weather and following up on any early trades of raw material.

  • Brazilnuts October 06, 2016

    The smaller factories have already finished production as they were unable to get more raw material due to the short crop. Remaining mid to large sized origin factories/ sellers are currently withdrawn from the market, trying to establish their exact remaining inventories in order to make sure that they do not over sell.  As a result the market is firm with very limited availability, with offers only from resellers. Price may remain firm until Q2, 2017 when we would get supply relief with new crop material being available.

  • Brazilnutkernels December 21, 2016

    The market for Brazilnutkernels is not very easy to judge at the moment. The facts are as follows:

    Stocks in Europe and USA are limited so prices for spot material are firm and nearby positions will be firm.

    Till new crop arrives to the market, any new demand may spark price increases as physical material will be tight in supply.

    All factories in Bolivia are (still) closed as they have no more old crop raw material to process.

    There were some rains, but that did not result in crop to be collected. Further rains are expected after which collectors will go into the jungle to start collecting. Any early crop coming out now is not sufficient yet for processors to start up.

    Right now it is impossible to judge the new crop volume, timing is not right.

    Most factories will start processing January/February for shipment March/April from the port.

    Caution with rain of course are the road conditions. When there will have heavy rains, the road to Arica might be damaged (again) and first new crop shipments delayed.

    Typically, first new crop arrives in Europe during May/June, it is unlikely for (serious) volume to arrive earlier.

    Summarizing: we have to deal with the current inventory until new crop arrives, which is likely around May/June 2017. Premiums are expected to be paid by the factories for first new crop raw material, to allow the factories to start processing. Price wise, one may anticipate kernel prices for first new crop arrivals to be at a slight discount to current crop material (SPOT market).

    It is our recommendation to be covered until Jun/Jul at least and probably take a partly cover for Q3 of 2017.

  • Brazilnuts January 26, 2017

    The high prices at the end of 2016 crop resulted in a high raw material price for the new crop. As factories at the end of 2016 shut early they have started this season well financed and ready to purchase. This eagerness alongside rumours that the crop could be short has pushed raw material prices up further. Shippers at origin are currently withdrawn from the market. When they return we expect that prices will have increased.

  • Brazilnuts February 9, 2017

    The market of Brazilnutkernels is very difficult at the moment. Supply of inshell nuts from the jungle is very limited and prices are pushed up.

    Spot availability is also limited while this has to fill the gap until new crop, expected to start shipping April/May. It won’t be an easy season and our recommendation is to cover when you can although it will be difficult to find offers.

  • Brazilnuts February 23, 2017

    The brazil market is unfortunately not getting easier. Stocks are very small and it is still quite a while to go before new crop product will arrive. Short shipments are the main reason for this and caught a lot of importers by surprise. It doesn’t really look like new crop is going to bring any relief. Raw material prices in origin are firming by the day due to incredible competition. There are hardly any offers from the factories since they are uncertain about the quantity and quality. It looks like a market where it is wise to book your early needs if possible as prices can currently only go one direction and that is up.

  • Brazilnuts March 8, 2017

    The market of Brazilnutkernels is very difficult. Each day prices are going up. There is some raw material available but prices are going up. It is for sure that the crop is down because of El Nino. The indications we get is that the crop might be down by 40-50%. This will have a serious impact on the supply and cause further increasing prices unfortunately.