The Brazil nuts market for current crop can be seen as one of the worst in decades. Latest figures tell about 60-70% will be shipped less compared to last year. The industry is suffering from enormous shortages and packers are in serious difficulties to fulfil old contracts which have been contracted before we all knew the situation was going to be this bad.
Prices of raw material went sky-high and none of the packers does have any advantages by shipping these contracts. In fact they will al suffer big losses. Postponing these contracts to next crop is for some of these packers the only way to survive. Factories will be closed for months and workers can’t be paid. Especially in the Riberalta area this will have a big influence on the living conditions of these people as most of the economy in this area is depending on the Brazil nut industry.
We expect no new offers from packers this year as all available raw material will be used for pending contracts. Although we expect some (smaller) packers don’t have any choice and will go into default.
Prices have been rising above US$ 7,- per lbs FOB and in the local spot market we have even seen higher prices for old crop. We don’t think prices will go down the next 8-10 months. Packers will be extremely cautious with offering new crop.
If you are able to find availability in the local spot market, fulfil your needs for the next 8 months.
Antares is currently not able to offer any Brazil nuts from origin or in spot positions. If you are able to offer us your available Brazil nuts, please don’t hesitate and make us an offer. We are interested in any midget or medium grades from different origins.