Market info - Almonds
US almond traders report highly encouraging shipments to Europe. Consumer demand within Europe is, however, largely subdued. Issue are the restrictions in place to curb the spread of the coronavirus.
Subdued demand weighs on prices
Although US traders are highly confident that exports to Europe are up, traders in Europe report that the current demand situation is anything but encouraging. Issue is that large volumes are normally consumed in traditional settings such as Christmas markets in Germany or in bars and cafes in Spain. With restrictions in place to curb the spread of the virus these venues are, however, closed meaning that less almonds are being consumed. Although retail demand is up, market experts uniformly agree that this can only partially compensate for the shortfalls in demand in the food service industry. In how far optimistic expectations regarding shipments and record US production volumes are justified will show in the Almond Board of California's November export report, which will be issued in mid-December.
Although the season started off well with export volumes ranging high in recent months, Spain's almond market is reeling under the pressure of domestic and US arrivals. Demand certainly leaves much to be desired and prices have been revised downwards by up to EUR 0.10/kg in Spain this week. Prices are expected to decline further.