May 16, 2006

On May 10, the California Field Office of the National Agricultural Statistics Service (NASS) announced the 2006 Crop Subjective Forecast at:

1.020 Billion Pounds

This is 12% above the 2005 crop-to-date receipts that, according to the Almond Board's April Position Report, is currently at 911 million pounds. There is always much anticipation within the industry before any forecast is announced. This year was no exception. The number seems to be between realistic and conservative amongst those in the industry. The current crop market remained unchanged to slightly firmer due to the positive ABC April shipments report. New crop continues to lag behind current crop with a large differential between the two as current crop gets harder to find and the prediction of an increased supply for 2006. The question is, how much longer does one hold current crop before it looses value to new crop pricing?

NASS will announce the Objective Forecast on Thursday, June 29, 2006 at noon.

April proved to be another demanding month for almond shipments reaching 70 million pounds. This is a 20% increase for the same month last year and leaves 161 million pounds of uncommitted inventory. This continued pattern of strong shipments should persist through the end of the crop year and into harvest as buyers come back with confidence due to much lower pricing than a year ago.

The following grower prices reflect today's market. Please call for a firm quote if you are interested in selling any of your crop.

Just a reminder, the annual RPAC, LLC and PAPC Grower Appreciation Lunch will take place on Tuesday, May 23 at Noon at Wool Growers Restaurant in Los Banos. Please call the office at (209) 826-0272 to RSVP.

As always, if you have questions about any of the above or what you are hearing, please do not hesitate to call me at (209) 602-6926.

          

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RPAC, LLC

P.O. Box 2138

Los Banos, CA 93635

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