February 2003 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)

January 2003 (Million Lbs.)

80.9
1,030.5

247.6
525.7

Total Sold

Uncommitted Inventory (Not Sold)

773.3

338.9

Position Report

The disappearance of California Almonds continues at a record shattering pace. Shipments for January hit 81 million pounds eclipsing last January’s record by 12.3 million pounds. Total shipments to date now stand at 576.3 million pounds. This new total of 576.3 million pounds shipped, puts us at 78.4 million pounds ahead of last years record for shipments during the same period. Total receipts have hit 1073.5 million pounds, surpassing the objective crop estimate by nearly 100 million pounds. Having improved availability over last year along with terrific shipments to date, total shipments for this 2002-03 marketing year could hit the 900-950 million pound mark. Giving us a 160-210 million pound carryout. Considering the growth our industry has experienced over the last five years and the fact that the nonpareil crop tends to be alter bearing, a carryout of 160-210 million pounds would be a comfortable number going into the 2003 crop.

The Market

Buying interest peaked in January and has cooled off a bit in February. Experiencing a cool down in February is not uncommon. At this point, most handlers are content with their sold position and are willing to wait and evaluate the bloom before jumping back into the market. Likewise, most users have covered their positions through the bloom period and they also are willing to wait and evaluate the bloom before booking new business. As a result, the best way to describe today’s market is quiet. Pricing from this point forward on both current and new crop will hinge heavily on bloom and post bloom weather.

2003 Crop Bloom

Currently, the bloom is about half way completed. The Nonpareil and Sonora bud-set is a bit skimpy. With all other varieties looking fair to good. The bloom started in Kern County and was followed by Sacramento Valley and North San Joaquin Valley. Madera and Fresno Counties seem to be lagging behind. The bloom appears to be moving quickly where blossoms open up one day and one to three days later you already have petals drop. Weather has been fair to good with about average bee activity. After observing the bloom so far, it would be highly unlikely that we will see a crop like we harvested last year.

Final Payment

Minturn Nut Company is still targeting April 15th, which falls on a Tuesday for making our final payment. We have roughly 10% left to sell and are hopeful we can announce our final prices in next month’s newsletter.