December 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, 2002
2002-03 Net Marketable Crop (Received to date)

November 2002 ( Million Lbs.)

80.9
914.3

221.3
436.1

Total Sold

Uncommitted Inventory (Not Sold)

657.4

337.8

Position Report

WOW ! Our industry shipped out a record 112.0 million pounds for November compared to last years record of 78.5 million pounds. Total Crop Receipts now stand at 952.4 million pounds with a handful of hullers still operating. When all is said and done, the 2002 crop will probably fall between 1.025 to 1.050 billion pounds. Shipping 900 million pounds is not out of the question assuming shipping continues at the current pace. Improving shipments to 900 million pounds would indicate an increase in world demand for California almonds by 75 million pounds over last year.

The Market

Yes, prices are strengthening even though we just produced the largest crop in history. There are several basic reasons for this robust almond market: 1) shipments have exceeded expectations, 2) almond handlers have pulled off the market being content with their sold position, 3) fears of a poor crop next year, 4) almonds have been competitively priced against other nut meats and 5) the relative lower value of the dollar compared to foreign currency. Users are recognizing that supplies may become tight as the marketing year moves forward. As a result the industry is experiencing heavy interest in prompt and long term contracting. Prices have moved up across the board on both current and 2003 crop. If we don’t become too bullish on our pricing, this momentum should carry into the new crop year and beyond.

2002 Grower Pool Payment - January 6th

As a reminder the January Pool payment is just around the corner. This payment will bring nonpareil prices to $.76/lb and other varieties to $.65/lb. This payment will be available January 6th. If you would like to pick up your payment contact the office.

Holiday Office Hours

Our office will be closed beginning December 24th and reopen January 6th. Just a reminder that you can contact your field representative by cell phone during this time: Dave Hudgins 209-617-8500, Keith Rigg 209-604-9981, Richard Marchini 209-769-7500 and Matt Kahl 209-761-1928.

Happy Holidays!