Macadamias Nuts, Market Update, 16.09.2022

Demand:-
From a global perspective Macadamia demand over the past few years has been propped up by Chinese demand for NIS (nut in shell) but this is waning due to a struggling economy, sporadic lockdowns (zero tolerance to Covid-19) and the fact that their sizeable domestic crop is now coming to fruition. Meanwhile, global inflation and more conservative buying behavior is denting demand.
In Europe, the Euro and GBP have fallen around 10% against the USD in recent months which in turn means prices will look high.

Supply:
From a South African perspective, the Weaker Rand against USD/Euro means this origin is able to sell cheaper, and with a crop estimated to be 68,000mt of NIS against a previous forecast of 62,000mt there is obviously more pressure to sell into a relatively quiet market. There is particular downward pressure on grades Style 4L (halves) and Pieces which now look very good value and are more in line with some other nuts.