Following record low prices for “Siberica” pinenut kernels due to this year’s very large crop, we expect further price increases in the coming months as poor crops are expected in 2018 for both “Pineus Koreansis” and “Siberica” varieties.
Traditionally in Europe the market for pinenuts is dominated by the “Siberica” variety from Russia or Mongolia and the “Pinus Koreansis” from China. In previous short crop years Pakistani pinenuts were traded extensively but due to quality issues and lack of suitable accreditation from processors this origin lost its market share considerably. European pinenuts are mainly consumed in their country of origin, Italy , Portugal and Spain and due to very high prices this has to be treated as a niche market.
With an expected ‘Siberica” inshell crop of 2.000 m/tons in 2018 (compared to this years crop of 8.000 m/tons) it is not hard to see why the prices over the last few months have increased by about Usd 3.000,- per m/ton and further increases of up to another 40% would not be unrealistic. .
For the “Pinus Koreansis” crop the expected drop in volume is less. With a 2017 crop of 95.000 m/ton of inshells and an expected 2018 crop of 60.000 m/tons price are expected to increase but not as drastically as with the “Siberica” variety
This means that the price gap between the two varieties (which a few months ago was more than Usd 10.000,- p/mton) will narrow again to more normal levels. We expect to see increased demand for the “Pinus Koreansis” variety, specially for the 650 count as it is not available as a “SIberica” which is normally no larger than 800 pieces per 100 grammes..
The smaller counts “Siberica” (1.000 -1.200) are very competitively priced and used extensively in salad mixes and in pesto sauces.
Furthermore it is important to know that we at Rhumveld only buy our pinenuts in China from CCCFNA approved suppliers accredited with SGS and DNA certificates.
Summarizing the above we can conclude that we do not expect the prices of pinenuts to go any lower and advise you to take cover forward as we believe that this market will make another upward price movement in the months to come.