July Outlook Report: Nuts and Oils

- Peanut Planting in the Northern Hemisphere is well underway, with conditions mostly favorable in major producing countries. In India, heavy rainfall and better-than-expected summer crop production put prices under downward pressure. Abundant soil moisture may help sustain the groundnut crop if conditions dry up due to El Niño.
- Mostly favorable weather continues over the Northern Hemisphere’s almond production areas. The harvest will start in August and no significant price changes are expected before that, as consumer and import demand remains weak compared to previous years and global production remains steady. The USDA’s objective almond measurement will be closely watched.
- With no sign of demand recovery and another bumper crop expected in the Northern Hemisphere, walnut prices remain in a sideways trend at multi-year low levels. The harvest in the Northern Hemisphere will start in September, and globally there are ample supplies available until the new crop arrives. Higher-quality walnuts are in shorter supply, which has boosted demand for Chilean walnuts.
- Türkiye remains the only significant source of hazelnuts until the next harvest starts in August. Turkish hazelnuts have been more expensive than competing suppliers. However, many importers have already done their procurement until the new crop arrives. The direction of the Turkish lira will play a significant role in determining hazelnut prices as a further weakening could make Turkish hazelnuts more competitive.
-The benchmark crude palm oil spot contract has traded flat over the month, staying at $902.5/mt at the time of reporting. The Tridge benchmark wholesale virgin olive oil has gained 0.24% to end June at €6.60/kg. Rapeseed on the Euronext futures traded marginally up, gaining (€10.5) MoM to end the month at €441/mt. There was less activity in the sunflower market over June, and the price remained unchanged at $835/mt.