Walnuts: buyers urged to caution in China

October 27, 2021 at 8:00 AM, Der AUDITOR
Play report as audio

BEIJING/SACRAMENTO. The International Nut and Dried Fruit Council (INC) and the US Department of Agriculture anticipate sharp declines in walnut production in some countries in their recently issued estimates. China is, however, a noted exception. Production remains high here.


The USDA estimates that China's inshell production will exceed 1.1 million mt in 2021/2022, which is similar in size to last year. On this basis the INC anticipates that walnut kernel production will range at 510,400 mt. China will, in other words retain, its position as leading producer as other provinces were able to compensate for the damages caused by frost and hailstorms in Xinjiang. High demand has, however, driven up prices by 40% on last year as the INC reports.

Traders also state that prices differ widely in China depending on quality. Buyers are urged to pay special attention to quality, espacially with regard to cheap offers. Issue is that the hike in demand prompted many suppliers to pay less attention to quality for lower priced varieties. With crude oil trading much higher the costs of shipping and transportation to and from factories have also risen. Kernels, light halves, 90% are trading at USD 5,250/mt FOB Qingdao and light quarters at USD 5,070/mt FOB Qingdao.


The USDA anticipates a 15% decline in production in the recently issued Objective Measurement Report for 2021. Inshell production should range at 608,000 mt in 2021/2022, which is down on last year's record production of 712,000 mt. According to the California Walnut Board and Commission frost caused considerable damage in late autumn last year, which delayed the development of the nuts.  The INC, however, reports that the kernels are in good quality and of avergae size. Demand remains high and diced US walnuts in a 10 kg box cost EUR 2.64/kg EXW Poland.


ChileNut expects national production to decline by 8% to around 150,000 mt due to adverse weather conditions. As much as 91% of the new crop have already been sold. The lack of containers and carriers has, however, delayed exports. The backlog already amounts to around 17,000 mt. Prices are slightly up in Europe and Chandler walnuts, ELHP 40%, are currently trading at EUR 7.45/kg FCA Spain.

Walnuts, Chile



Chandler ELHP, 20%


Chandler, ELHP, 40%


Chandler, inshell, 30-34 mm


Serr, inshell, 30+mm


FCA Spain


Ukraine will also step up production this year. As new trees have been planted in recent years acreage has risen to 19,100 ha as the State Statistical Service of Ukraine reports. The USDA and FA Kyiv estimate inshell production at 133,000 mt, which is 17% up on last year.


View more
price charts for nuts, dried fruit and oilseeds and more

View related articles

Go to the News Overview
Jan 30, 2023
NEW DELHI. The shortage of sesame oil is making many buyers in India and overseas switch to peanut oil as a popular alternative. The higher demand is also causing prices to rise. There is good news regarding import duties.
Jan 25, 2023
MADRID/SACRAMENTO. Although Spain’s almond exports received a boost in November, the dent in exports is still much higher than in California. Competition between Spain and California remains fierce with speculations on water supplies and exchange rates having top priority at present.
Jan 23, 2023
NEW DELHI. Farmers are in full control of India’s peanut market. Not only do they still hold more than 35% of all stocks but they also know how to play to their advantage. Artificial intelligence may also prove an asset in limiting aflatoxin contamination.
Jan 19, 2023
ORDU. Things have taken such a bizarre turn in Turkey that buyers have switched to other hazelnut producing countries such as Georgia, Azerbaijan or Italy. Drought will, in fact, have a lasting impact on production in Italy.