Someone must have read my post. ;) Or came to the same...

Someone must have read my post. Or came to the same conclusion as me.

Good investor briefing from Paul & Brad earlier today. The question about the weather came up and Paul highlighted that the rain in California is very poor timing as post harvest is the time that growers would usually be doing their post-harvest horticultural program however the rains, wet ground, would complicate that. Heavy equipment cannot get into the orchards if the ground is too wet.

Note that the latest rainfall is mostly in the northern and central growing areas which have now been downgraded from being in exceptional drought conditions (highest level) to extreme drought (2nd highest) whilst the southern areas are still in exceptional drought.

Storages meanwhile are still only around 30% in California. And Paul anticipates that there is about 25% more permanent crops than the water supply can accommodate. Although with the high value of almond crops he anticipates that the lesser value crops with be removed before almond orchards. I however disagree as water/environment is only one influence in what stays and what goes, given the current political climate in the USA with a growing inward focus I think there would be less appetite to use crucial water supplies for a largely export oriented industry. About two thirds of Californian almonds are exported (okay, I'm guessing at that figure as I can't be bothered looking up the actual ratio of exports to domestic shipments but it's got to be at least reasonably close given how long I've been following this industry) thus making the almond industry at current levels unpalatable (pun intended).