Monday, November 30, 2015

Today In Almonds: The Price Correction Is Over, Huzzah!

I suppose whether or not you huzzah! depends on whether you think the little guys are for eatin' or for sellin'.
From Agrimoney:

Drop in almond prices is over, Select Harvests says
The correction in almond prices is over, as the effects of the Californian drought rule out a supply boom from the US, according to grower Select Harvests.

Australia-based Select Harvests forecast almond prices for 2015-16 were at Aus$12 a kilogramme, compared to an average of Aus$11.45 a kilogramme last season.

Almond prices have eased by around 25% since August, although they are still higher than at any point before 2014.

Prices peakChanging consumer tastes, and increased health consciousness, has fuelled a boom in almond demand over the last few years, with increasing volumes used in dairy-free milk substitutes.

Dollar-denominated almond prices peaked in the summer of this year, having grown by more than 200% in five years.

But the slow pace of recent shipments from the US has raised fears of easing demand.

Last week, QFN Trading & Agency noted that October, the most important month of the season, saw shipments down 20%, and warned that without improved demand, or a disruption to US production, "there is no reason for prices to stop falling right now".

Demand remains in placeSelect Harvests chairman Michael Iwaniw said that despite some "buyer price resistance," the company expected "continued relatively high almond prices in the short to mid-term"....MORE
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