Original content
Despite the ongoing harvest, nut prices in Spain, including almonds, pistachios, and walnuts, remain strong and are higher than the previous year. Spain, a major nut importer, sees a continued strength in nut prices due to a global rebalancing of supply and demand, particularly for almonds. The stability of nut prices during the harvest season suggests potential strength in prices post-harvest, particularly for almonds, which are affected by lower production in the U.S. and Spain and growing global demand.
As of the second week of October, Brazilian corn wholesale prices traded virtually unchanged at BRL 1.58 per kilogram (kg). Prices haven't moved considerably since the start of H2-2023 but have remained notably below 2022's levels since then (down 19%).
Prices haven't reacted to the news of the Israel-Hamas conflict, which started just a few days earlier than the date of this price point. However, upside pressure looms.
Market fear over scaling geopolitical tensions has already affected some sectors, particularly energy. As of October 19, oil prices were trading 29% above their recent lows this past June. In the meantime, December futures of corn in the United States (US) reached a one-month high on October 19. Meanwhile, another indicator for Brazilian corn reached three-month highs in recent days as well. The major concern is for Brazil's second corn harvest in 2024.
These concerns over geopolitical tension add to existing upward pressure derived from recently downgraded expectations for the 2023-2024 Brazilian corn harvest. For now, high uncertainty remains a bullish factor for prices.
Trade4go
Oct 18th, 2023
