Almond Review - October 2016

Today the Almond Board of California released the September 2016 position report.

September shipments were 202 million lbs. vs. 143 million lbs. in 2015 - UP 41%

DEMAND

September sales of 359 million lbs. was an all-time record - greatly surpassing the previous record of 277 in October 2014.  Committed (unshipped) is up 45% vs. a year ago.  Total shipped & committed surpassed 1 billion lbs.  

USA (+15%) showed interest in both quick deliveries and far out periods.  Buyers seem optimistic about growing consumption again.

China (+82%) has been covering steadily ahead of their early New Year celebrations.  

India (+40%) also has their early Diwali.  They have been mostly absent from the market due to heavy shipments afloat.

The Middle East (+173%) finally returned in a big way after working through most of the spring shipments.

Western Europe (+5%) was an active buyer during September.  The region is up 21% for the season as the Spanish crop is yielding below expectations.  Spain's drought has negatively impacted their crop, so offers are hard to find and pricing is at least 20% above CA pricing.

THE 2016 CROP

Receipts reached 990.6 million lbs. - up 7.4 vs. a year ago.   The general consensus is still for a crop above NASS' 2.05 Billion lb. forecast.

OUTLOOK:

In March the market hit bottom and it is taking time for the low prices to reach consumers.  Following a bearish August, the focus over the past month shifted to the idea that almonds were under-priced and the industry cannot continue such a high sales and shipment pace.  This has pushed pricing up 0.35/lb.

California's drought is increasingly part of the market discussion again and some believe the winter weather is a key market factor.

Many wonder when the heavy buying interest will slow, and when it does, how big of a selling interest will appear.  The increasingly strong USD and world economic uncertainty should also bring caution.

In the meantime, the industry continues with a comfortable sold position above 40% and expectations for another impressive shipping report for October.  The shock of today's figures is already pushing pricing higher with Unsized Cals up 0.10/lb.

FDA Redefines "Healthy" - Almonds can now be labeled accordingly

Water Supply Update

September 2016 Position Report

Next position report:  Tuesday November 8, 2016 (**REVISED Oct 31 from originally planned Nov 11 release)

Best regards,

Paul Ewing      Dennis Soares

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