Walnut Market Update - July 2022
June shipments continued the strong shipment trend with a record set for June at 47,091 tons. This is 15% higher than the previous record for June of 40,955 tons, set last year. We are hopeful that this is a sign of improved supply chains for the entire California tree nut industry, and hopefully we continue to see improvement.
Sales increased in the month of June with 25k tons of new sales versus 13k tons in May. As supply dwindles and pricing remains at record lows, demand for remaining California supply has been strong. The 2021-2022 total supply is estimated to be 86.7% sold. We are confident the final two months of the season will continue the positive shipping trend, given the strong commitments.
The California walnut industry has been able to significantly improve our position heading into the 2022 crop. The 2021 crop carry out was once thought to be more than 160k tons and achieving a carry out close to 120k seemed entirely out of reach, if not impossible. The momentum gained over the last few months is very promising and demonstrates just how resilient our industry is, and we should expect this momentum to carry into the 2022 crop.
Larger 2022 crops continue to be forecasted in both California and China, as growing conditions have been favorable. Global supply will increase significantly in the coming crop year. With this at the forefront of our minds, it is important that the California walnut industry continues to sell and ship as many walnuts as possible, while also keeping a focus on driving new product innovations. Given the low-price environment we are likely to be in for the near term, now is the time to focus on new product development and also market segments with low penetration, such as walnut ingredients.