Title: Almond prices crushed by demand slump and bumper harvest | Financial Times
Headings: Almond prices crushed by demand slump and bumper harvest
Almond prices crushed by demand slump and bumper harvest
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Content: Prices were also supported by growers who held on to their crops in the hope of getting a better price, say industry executives. However, the relentless rise in the almond market eventually eroded demand. Ashok Krishen, global head of edible nuts at Olam, the agricultural commodities trader, says: “ Emerging market demand with less price inelasticity began to fall at first and was followed by the traditional developed markets towards the end of 2015.” In Europe, for example, many snack producers and foodmakers started to reduce the amount of almonds used as ingredients or in the bags of nuts. Michael Stevens, an almond trader at Edinburgh-based Freeworld Trading, says: “ The problem was that we had such high prices that a lot of almonds were taken out from products and almond packs were reduced in size. All of that has damaged demand.” Heavy rains and snow in California thanks to the El Niño weather phenomenon added to the bearish sentiment. Confidence was further hit by the release of fresh industry data earlier this month, which caused surprise.