April 2018 Macadamia Nuts Market Update
There is not a lot to report on macadamias at the moment. The demand for kernel remains strong with only limited offers available. The style 0 and 1 are particularly hard to get at the moment, but also style 4L is limited in supply. It is a bit hard to say what the reason is. Obviously the market has been empty for quite some time resulting in some early covering for the first positions, but does this mean a big portion of the crop is already committed? Or are sellers simply cautious after the bad experiences of the past years when crops were disappointing.
Another reason could be that processors first allocate product to the NIS market as prices are still good there even though a touch softer than in 2017 season. For a lot of the product with a lower meat yield (SKR) the NIS market is still more profitable.
At the moment the producers cannot offer anymore kernel due to large contracted sales for the season already. The macadamia producers are looking at this upcoming in the next few months as the situation arises.