Walnut Market Update: Rising Prices and Supply Shortages in Key Varieties
Walnut Market Faces Price Surge Amid Speculation and Supply Challenges
The global walnut market is currently experiencing significant price fluctuations, driven by speculative behavior and supply shortages. As key walnut varieties face rising demand, processing plants are struggling to secure enough raw material, pushing prices higher. Here is an update on the recent market trends across several popular walnut varieties.Xin2 Variety: Speculators Hold Back Supply
The Xin2 variety is facing a shortage as speculators are withholding walnut inshell materials in hopes of higher prices in the near future. This has caused a significant spike in raw material prices, creating challenges for processing plants that rely on a steady supply. Some plants have even begun to consider purchasing walnut kernels directly to meet their needs.As the market for kernel material opens up, prices have continued to rise. With demand remaining strong, factories are expected to increase their acquisition of walnut kernels, which could push prices even higher. The ELH (Extra Light Halves) price for the Xin2 variety is projected to reach $4,950/MT FOB, further straining the market.
Due to these inventory issues, some processing plants have temporarily stopped taking orders, opting to wait for price stabilization before resuming business.
185 Variety: Stable for Now, But Likely to Rise
The 185 variety, which is currently dominated by shelled kernels, has seen a small increase in inshell prices due to rising market demand. For now, the price of kernels remains relatively stable, but with the Xin2 variety facing supply shortages, some buyers may switch to the 185 variety. This shift could lead to price increases in the future.In addition, the lead time and shipment for the 185 variety are faster than those for Xin2, making it a more attractive option for buyers looking for quicker deliveries.
Xinfeng Variety: Price Continues to Climb
The price of the Xinfeng variety has increased by $70/MT compared to last week, reflecting the ongoing pressure on the walnut market as demand outpaces supply.Traditional Variety: Stability in Price and Supply
The Traditional variety is one of the more stable segments in the walnut market. Both production levels and current material prices remain steady, with sufficient supply to meet demand. No significant price fluctuations are expected in the short term for this variety.Outlook: Continued Pressure on Prices
As speculators hold back raw materials and demand for walnut kernels increases, the walnut market is likely to see further price increases, especially in the Xin2 and 185 varieties. Buyers and traders are closely monitoring the situation, with some opting to delay orders until prices stabilize. The next few weeks will be crucial for determining how the market adjusts to these supply and pricing challenges.Click here to reach our trading platfrom CMBroker
Source: Sdkingland