Latest Macadamia Transactions
Recorded offers by sellers in the final week of March 2024 continued their strong showing seen during that month with Style 0 and Style 1 stock reaching close to an average of US$12/kg CIF. Average March prices were softened slightly by trade of 2023 crop from Guatemala and Kenya to Europe at lower prices earlier in the month. Market discussions hint at a modest uptick in prices, particularly noticeable in the higher styles (Style 0 – Style 2 and NIS22+), as anticipated by industry insiders. While this trend is encouraging, it emerges amidst the prelude to Q2 trading, signifying a promising start. For those with commendable quality standards, this could mark a notable turnaround,
possibly heralding the most promising post-COVID year yet.
Larger NIS styles were traded in the final week of March, with average prices ending slightly lower than what was seen during the month.
Market sentiment
Forecasts of improved prices continue to be made around the world as the market recovers from the tough trading conditions of recent years. Further reports of a recovery in demand from key destination markets will boost confidence in grower countries where record production levels are expected this year. Average prices for all kernel styles fell to
US$8.25/kg in 2023, down from highs of US$20.00/kg in 2018, according to Farmer’s Weekly. Handlers anticipate that the current stimulation in demand caused by the rapid drop in prices over the past two years will lead to better prices despite the increase in output in major grower countries such as South Africa and Australia. Some commodity
traders are expecting between a 10% and 30% increase in average global kernel prices in the year ahead with others reporting between a 12% and 15% increase in average NIS prices. Different styles are expected to increase in price at different rates, and grower associations are urging farmers to monitor the market and focus on quality to take full
advantage of any improvements in prices.
Trade trends
Early indications are that global demand for macadamias will rise this season ahead, although this will be influenced by yield and quality achieved in 2024’s harvests. Increased crop volume at better prices will bring good news for growers and handlers in origin countries. The second quarter of the year will bring greater clarity of demand in the market and price trends as South Africa and Australia’s crop reaches the market. Suggestions are that Chinese demand recovery, evidenced in increased nut-in-shell imports over its recent new year celebrations, will continue into 2024. Producers around the world, such as those in South Africa, will be looking for improved prices to accompany increased crop production to bring relief to the intensifying margin pressure of the previous three seasons.
