The California walnut industry is still navigating through rough waters, as both physical shipment availability and global demand for walnuts remain at modest levels. The current price levels are close or even under the cost of production for some packers, driven by the fact that the total cost of production can differ quite a bit from orchard to orchard. Despite the fact that physical shipment availability remains a gamble, are most buyers rather comfortable on their position and not eager to cover further positions at the current levels. This prevents the market from sliding down further, adding more pressure to suppliers to make a move and try to get some business going. Overall we can conclude that walnuts remain to be a buyers’ market, with no sign of relief in the nearby future.
