Hungarian Wheat Farmgate Price Increased by 9% WoW Amidst Ukrainian Wheat Imports Ban

The farmgate price of wheat in Hungary has increased by 9% WoW to HUF 129.42/kg in W2-June 2023. This is a significant turnaround since two weeks ago from the declining prices in the previous months. The price hike owing to the ban on wheat imports from Ukraine and the increasing demand for Hungarian wheat.
Macadamia prices in Australia dropped to the lowest level in 2023 as ample supplies keep prices under immense downward pressure. The wholesale price of unsalted macadamia kernels in Sydney dropped to USD 29.56/kg at the end of May, down 1.5% MoM and down 4% since the start of the year. The Australian harvest is well underway and so far, good yields and good-quality nuts are reported, keeping prices under pressure. The latest crop estimate pegged production in 2023 at 60,000 mt, a 13% increase from 2022. The Australian Macadamia Society will release a mid-season crop report in the coming weeks, but little change is expected in the production estimate. Production in the world's top producer, South Africa, is forecasted at an enormous 81,556 mt, up 18.5% from 2022. The latest forecast is also 4.7% higher than the initial estimate, adding to the bearish tone for prices. Kenyan production is also increasing and is expected to easily surpass 40,000 mt in 2023. The Kenyan government also lifted a 14-year ban on in-shell macadamia exports, adding even more downward pressure to prices. The ongoing harvest in the Southern Hemisphere, where about two-thirds of global production takes place, will keep prices under pressure. There are very few bullish factors supporting prices. At current income and expenditure levels, farmers in Australia are struggling to make ends meet. Farmgate prices in Australia have dropped as low as AUD2.00/kg, with farmers estimating production costs of AUD3.00/kg. Australian news agencies have reported that an estimated 20 to 50 macadamia orchards are up for sale across Australia. A quick rebalancing of global supply and demand is unlikely as many young trees will still come into production over the next 5 to 10 years, following expansion in macadamia areas in South Africa, Australia, Kenya, and China. If global demand recovers, it could be a long process, and prices could remain at low levels until at least the end of 2023.