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.Previously:
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
Almonds and the California Drought (UPDATED)
Land: U.S. Orchards Again Outperform Cropland For Investment Returns
Psst, I Think They're Catching On to the Almond Racket
Noble Nuts: "Almond, hazelnut prices to rise - but not peanut values"
How Growers Gamed California’s Drought"
Lay Off the Almond Milk, You Ignorant Hipsters
Trading the California Drought: Almonds and Water
California Drought: Why Farmers Are 'Exporting Water' to China
"California Almonds Saved by Diverting Water From Veggies"
A Higher Yielding Alternative to Corn and Wheat: "Agriculture Investors Develop a Taste for Permanent Crops"
Straight Talk on Weather and Climate: "Will California's Drought Bring About $7 Broccoli?"
Projected Price Increases For Foods Affected By the California Drought
"Nut prices, elevated by weather setbacks, 'to stay high'"
El Nino Won't Come Quick Enough To Break the California Drought
U.S. Farmland Has Been the Top Performing Asset Over the Last 20 Years: Goodbye to all that
Attention Fiduciaries: Strawberry Farming Up to 9796% More Profitable Than Corn