September 2002 NEWSLETTER

8800 South Minturn Road
Le Grand California 95333 USA
Office 559-665-8500
FAX 559-665-8588

Almond Industry Position Report

Carry-in August 1, 2001
2001 Net Marketable Crop (Received to date)

August 2002 ( Million Lbs.)

80.9
80.8

132.1
156.6

Total Sold

Uncommitted Inventory (Not Sold)

288.7

(127.0)

Position Report

California almond shipments for the month of August slipped to 53.9 million pounds compared to 60.5 million pounds a year ago. The dip in shipments can most likely be blamed on the late harvest start. Most feel that we will catch up with last year’s record shipment pace by the end of October. Crop receipts are standing at 84.2 million pounds. This number is less than last year; again due to the late harvest. It is too early in the season to draw any conclusion based on these beginning numbers.

2002 Crop Harvest

Harvest started about 10 - 14 days later than last year determined by soil type and location. The nonpareil harvest is more or less completed in the south and 50-65% finished in the north. The quality has been extremely good from day one. Huller and sheller's have reported the crop is moving through their plants swiftly while producing good quality. Almond deliveries to our plant have been following the same pattern with rejects (inedibles), foreign material, chipped/scratch and broken levels unusually low. This has given handlers the opportunity to capture high production numbers. The nonpareil production per acre appears to be “living” up to the estimates, and in some cases exceeding projected pounds. One draw back is the “size” or lack of sizes. The average size we have received is falling in the 27/30 range. This size is considered on the small side in a typical year and is not used in many applications. As the California classes are delivered we hope to see an increase in size, but early deliveries indicate that sizes are not improving.

The Market

The other day someone described the market as “mean” and that may be the most accurate reference in regards to today’s almond market! Buyers seem to want product not available and they want it shipped “last week”. Prices remain firm on bigger sizes (again there are not many) and soft on smaller sizes. Currently there is a $.35 difference from 23/25 nonpareils supreme to a 27/30 nonpareil supreme. A spread like that has never been seen in our Industry. Buyers are content buying week to week rather than future contracting. This means we are only able to sell a container here and there. Some Industry sources feel that as we move into October, availability may tighten due to the heavy commitments from previous bookings. During September handlers normally keep slots open in case there are prompt shipping opportunities. This year September opportunities have only been for larger sizes and the buyers have been able to fill their needs easily. This condition may change in October if there are no open slots for prompt delivery. If prompt delivery buying is not offered, prices may firm in October like we experienced last year.

Grower Information

If you have any question regarding deliveries, reports or payments please contact your field representative or check with Mary in the office.