Bill Morecraft – Senior Vice President
June 2017 shipments for the California almond industry reached a new record for the month at over 177 million lbs, an increase of 3 million lbs from the June 2016 record. The strong shipment number puts the industry in position to drop below last year’s ending inventory of 412 million lbs. Throughout the 2016 crop, California has shipped and committed 300 million lbs more than prior year, a 15.6% increase.
U.S demand was a record 65 million lbs and will finish in July at an all time high for the year. Demand has bounced back significantly with the stable pricing experienced on the 2016 crop. All major geographies have experienced significant growth this crop year, including China, India, the rest of Asia-Pacific, EU and the Middle East.
The strong shipments, coupled with the NASS Objective Estimate of 2.250 billion lbs released on July 6th, indicate the 2017 crop will be one of modest supply increase.
Market Perspective –
July shipments appear on track to deliver another year-over-year monthly increase.
With the publication of the NASS Objective Estimate, new crop business inquiries are emerging in markets worldwide.
With strong closing 2016 crop shipments and a NASS estimate on the low side of expectations, prices are likely to be firm over the next several months.