Nuts

Walnuts: surprisingly firm market in Chile

June 8, 2020 at 1:51 PM, Der AUDITOR
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SACRAMENTO/SANTIAGO DE CHILE. Despite a good production, the prices for walnuts in Chile cannot compete with the prices in the US.

Exports slump by 60%

At 130,000 metric tonnes in-shell production in Chile is nominally down on last year. Although sales were sluggish in the run-up to the season and exports ranged much lower than last year at the start of the season, around 60% of production is said to be places in contracts. Although prices are declining in California, the prices in Chile remain surprisingly stable.

ChileNut estimates that 7,125 metric tonnes of walnuts with and without shells were shipped overseas in the first six weeks of the season, which is around 60% less than in the same period last year. Shipments to Turkey (-72% to 1.412 mt) and to the United Arab Emirates (-95% to 332 mt) have declined drastically. By contrast, shipments to Germany (+127% to 166 mt), China (+86% to 486 mt) and Morocco (+22% to 1,903 mt) have risen.

Walnut exports, Chile, in mt

Destination

2019

2020

Diff.

Africa/Middle East

13,076

3,737

-71%

Europe

2,612

1,496

-43%

Asia/Oceania

1,170

1,685

44%

America

442

207

-53%

Total

17,299

7,125

-59%

ChileNut / (21 March to 30 Apr)

Spot market prices decline

The prospects of a good production in the US with estimates ranging at 650,000-655,000 metric tonnes have added pressure to the market. US walnuts are currently trading EUR 1.00 per kg lower than one month ago in Europe. Market players, however, reckon that prices will not fall considerably for the time being. US traders state that they are busy. No sales figures are, however, reported for walnuts. At the same time, US walnut kernels stocks ranged at 88,577 metric tonnes at the end of March, the second highest volume on record. In-shell stocks range at 20,595 metric tonnes. In how far the prices will continue to move downwards very much depends on the May export figures, which will be issued over the next few days.

Walnuts, USA

Type

EUR/kg

Chandler, LHP 80%

6.65

Chandler, LHP 30%

6.10

FCA Spain

Drought in Eastern Europe

Market players in Eastern Europe are, meanwhil,e voicing concerns over the weather. Problem is that there has been lots of sunshine, but little rain in recent months. This may have a negative impact on the fruit set of the trees. More insight will be provided over the next few weeks.

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