Market report Brazil nuts

The ramifications of the earlier flooding ( video is posted on this site ) continue.  Due to the hiatus in delivering raw material to Riberalta for cracking  there are many delayed shipments. All the weaker shippers who postponed last year’s contracts to this year will have huge problems fulfilling their obligations. Raw material is already trading above the equivalent of 4.00 usd/lb FOB for finished kernels. Due to the late shipments, stocks are very tight in Europe and we believe also in USA.  We have very little material to offer from the spot till July.   So it is very hard to fix a defaulted or “late” shipment. As yet we do not have a clear understanding as to the quality of the raw materials now arriving in factories in Riberalta . The fear is that the extended stay in the jungle, before drying in the factories means a poorer quality affecting both yield and flavour.  Many of the smaller factories delayed opening their factories till they had an adequate stream of raw material. Whatever happens now we now that the total processing capability for the season is sharply reduced. Meanwhile a game of “catch up ” is going on and it is pretty much impossible to secure a June shipment and July shipments are very scarce and at very high prices. So the squeeze is pushing itself forwards and maintaining a firm line for this market. Right now supply is calling all the shots, the voice of demand will be heard later, but our experience is that we are now entering an unsustainable price range. As usual the market over steers.