After being slammed at the end of February when Chinese importers shut up shop due to coronavirus concerns, almond producer Select Harvests (ASX: SHV) is back on the wagon.
The company hopes to take advantage of favourable market conditions as its 2020 harvest progresses.
The Australian January export shipment report released by the Australian Almond Board shows month-on-month shipments were up 40 per cent and year-to-date shipments rose 26 per cent.
SHV says world demand for almonds remains strong.
This is particularly exemplified by the Californian Almond Board releasing its domestic and export shipping report for the August 2019 to February 2020 period, which confirmed the 2019 crop will be approximately 2.55 billion pounds.
The company's 2020 crop is over 65 per cent committed for sale at prices within the range of $8 to $8.50 per kilo.
Export shipments of the 2020 crop, now 40 per cent harvested, will commence within the month.
"While it is too early to provide an accurate forecast SHV management is currently optimistic about crop size and quality," says SHV.
Shares in SHV are up 11.42 per cent to $5.95 per share at 3.31pm AEDT.
Business News Australia
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