The tendency of the walnut market remains firm, with further worrying rumors coming from California. In addition to the USDA crop forecast – which came out 15% lower than last season – are concerns from growers about the actual quality of the crop now making its way through the market as well. Next to the traditional parameters of quantity and quality, is an extra factor coming into play this season, which is the low availability of shipments from Oakland. Due to global issues in many supply chains, experts informed that there is more incentive for shippers to focus on Los Angeles ports, resulting in less sailings from Oakland itself. This is seen as the biggest challenge for the Californian walnut industry at the moment, with no clear sight on when this situation will improve.
The situation in most spot markets is – or will become – tight, due to the empty pipelines, ongoing sea freight difficulties and slow supply from alternative origins. The walnut season in Eastern-Europe seems to gain momentum very late this year, as raw material is not widely available to processors yet. At the same time the demand from European buyers, mainly trying to cover their traditional Christmas needs, is very strong, putting the processors in Eastern Europe in a comfortable position when it comes to the nearby positions. It remains to be seen how the second phase of the season will play out for Eastern-Europe, as issues in the supply chain from California might result in new opportunities and a longer season for Eastern-European processors.
