Second half March

This second half of March has been March has been dominated above all by the issue that we have today in our society and which has led us to take extreme measures society and which has led to extreme measures being taken: Covid19. Economically economically speaking, the national and international scene has been affected by this event and, of course and, of course, so has our sector. We have seen during these days quite strong fluctuations of the dollar, with an exchange rate that has been seen at 1.5 exchange rate that has been seen at 1.14 €/$, to be days later at 1.07 €/$, becoming 1.10 €/$. For its part, not only consumption, the atypical situation we are experiencing nationally and internationally, everything is out of the ordinary, from having to take very strong precautions, to teleworking, to the to teleworking, confinement, reduction of work or the closure of some factories. Everything is affected.

If we focus, as is customary in our reports, on how as usual in our reports, on how the weather has been these days, we must say that it has been generally good and positive. weather these days, we must say that in general it has been good and positive. We have enjoyed spring-like temperatures and some abundant rains, which have been even better, if possible, after a year in which the weather has been very good. even better, if possible, after a year in which rainfall has been fairly well distributed. have been fairly well distributed. Flowering is quite advanced in general as usual, with the late bloomers in the country being the most delayed, but in general it seems to be but, in general, it seems that everything is likely to lead to an early harvest. harvest.

 So far so good, except that we have seen that in some parts of the country that we have been able to see in some parts of the country that the almond trees have a very good view. almond trees have a very good view, but then you get close to them and they don't have as many almonds. not have as many almonds. We have seen this in some more traditional areas traditional areas where last year they had a good harvest. But as we say, in in general, everything is going well. It is true that at the end of last week we could some cold in the northern part, in the Lleida area, where it seems that the temperatures were temperatures were lower and some frost may have occurred; we have already seen some areas some affected areas. It is also true that this week there is a possibility of some cold in some parts of the almond-growing area, especially in the most dangerous areas, but since the end of last week but from the end of last week to today we have seen some changes in temperatures and cold that have in the temperatures and the cold that was predicted last week has changed for the better and there is less danger. better and there is less danger. But in general, it is too early to draw conclusions and it is true that some cold may come and damage some local areas, but hopefully some local areas, but let's hope that it is just that, local and not general. With days go by, and especially when we can go out and have a good look at the fields, we will be able to draw more accurate conclusions. the fields, we will be able to draw more accurate conclusions.

We leave you some photographs of some of the visits we made both last week and the week before. Already we warn you that they are not recent photos, they are a few days old.

As we commented in the last February shipments report, flowering in California is progressing quite satisfactorily and, unless there are any surprises, everything looks like progressing quite satisfactorily and, unless there are any surprises, the next harvest is going to be quite good. the next harvest is going to be quite good. The weather conditions have been have been very favourable and continue to be so, which means that the news for the harvest is still good. continue to be good.

On the price side, prices have been very stable, at $2.50/lb for the current crop and $2.40/lb for the current crop. prices have remained very stable at $2.50/lb for the current crop and $2.40/lb for the new season, if we are talking about Std 5%. 2.40/lb for the new season, if we are talking about Std 5%. Prices with the other varieties varieties, sizes and qualities very close in a very small range. Without However, the Codiv19 effect has made its appearance. Faced with the situation of uncertainty due to the global spread of the pandemic, containers being held up containers detained in ports and some returned, demand that is falling due to the situation... All these ingredients have caused all these ingredients have led to a drop in prices in the last few days, 2.40 $/lb current crop and 2.35 $/lb new crop, we are still talking about the Std 5%. The Americans are also in a situation, we insist, of uncertainty. uncertainty, and this has provoked a fall in prices which, for the moment, has stopped prices which, for the time being, has stopped at these levels. We will see how the market evolves market evolves in the face of this situation, but it is true that export operations have apparently been export operations have apparently been reduced, despite the fact that, domestically speaking, they have a fairly good level of activity In domestic terms, they have a fairly good level of activity in terms of supply. But In general, however, we observe a latent interest in sales, despite the fact that some suppliers prefer to wait or continue in their suppliers prefer to wait or remain in their very active domestic market.

We will see how the current situation affects will affect sales, but it is clear that it is not going to benefit them. The normal functioning of the market is going to be impossible and, being in such a special situation, we are not sure how things will situation, it is not clear how things will evolve, both during and after the pandemic. during and after the pandemic.

On April 9th the first shipments for the month of March shipments will be released on 9 April, when we will surely be able to see the first symptoms of this situation. symptoms of this situation.

Regarding the Spanish almond, a situation of "stability" has also been experienced over the last two weeks, especially in terms of prices, especially in terms of prices. It is true that the feeling, given the situation we are in, is even worse than it should be. Let us remember that December, January and February were months in which activity was drastically reduced, following drastically reduced, after the good months of October and November, and when prices had stabilised prices had now stabilised, both in California and in parallel to our own, demand seemed to have stabilised. demand seemed to have regained confidence, and both short, medium and long term transactions were starting to be made. and operations were beginning to be carried out in the short, medium and long term, this happened. This upward progression in terms of activity has come to a screeching halt. has come to a screeching halt. Therefore, the feeling is worse than it should be, we come with a changed pace. changed. 

During these two weeks, activity has been drastically reduced. activity has been drastically reduced. All those operations for the hotel and catering trade, tourism, Easter sweets... have dissipated. Only only thing that has continued to be active is the almond destined for distribution, especially to large supermarkets. distribution, especially to large supermarkets.

Domestic prices have not changed much. based on the most recent operations, we have placed a common owner at around €5.40/kg, a single-varietal at around €5.40/kg, a single-varietal at around an owner common at around 5.40 €/kg, a single variety at around 5.45/5.50 €/kg, an owner largueta at around 5.55/5.60 €/kg and the 5.45/5.50 €/kg, a largueta owner around 5.55/5.60 €/kg and the Marcona owner around 6.85 €/kg. The latest known new crop delivery September is 5.25 €/kg for owner communa. It is true that in the face of the low activity, we may find that some operations do not coincide with the others, as we are facing with the others, as we are facing a situation conducive to one-off operations. operations. Even so, we note that, despite the fact that demand is quite low, supply is not pressing either. supply does not exert any pressure either. It is difficult for it to lower prices in the face of this situation of uncertainty, combined with the lack of any inflow of shell.

Europe is facing a similar similar situation. Demand has largely disappeared, with the exception of the demand coming from large supermarkets which, rather than signing new contracts, are using the ones they already have, in some cases even bringing them forward. they already had, in some cases even bringing them forward.

In conclusion, we must be aware that difficult times lie ahead. that difficult times lie ahead. There are times of postponed deliveries, attempts to cancel contracts, difficulties to work, closures or low activity in industry, low activity in general... activity in the industry, little activity in general... It is true that our sector is not the most affected. sector is not the most affected, we belong to the food industry and whether it is in a restaurant or in your restaurant or at home, people continue to eat. Almonds are not a but it is also consumed in difficult times. We have to act cautiously, day by day, and being aware that perhaps, when we come out of this, many operations will have been left behind. many operations will have fallen by the wayside, but others will be postponed. postponed. We will see how they balance each other out.

We hope this information will help.