This message was from ANDY NACHBAUR to Kirk Jones <[log in to unmask]>
originally in conference IN-BEEKEEPIN on WILDBEES (WILD BEE'S BBS)
and was forwarded to you by ANDY NACHBAUR
                    ----------------------------------------
KJ>From: Kirk Jones <[log in to unmask]>
  >Date:         Sun, 28 Apr 1996 18:16:50 -0400
  >Subject:      wholesale honey market
 
KJ>I would appreciate any reports of current pricing on wholesale loads of
  >honey. Allen Dick reported lower prices on Argentine honey coming in.
 
I missed that report, but there will be no new Argentine crop until
next November and much of that honey has moved into the market. Sue
Bee had to purchase 4+ million pounds which was "new" business for
Argentine honey.
 
KJ>Some packers are offering contracts on this years crops. Anyone care to
  >predict at what prices packers may offer in Sept-Oct?
 
Honey packers in California are saying "big crop" here, this is far from
the truth and the crop will be much less then last year because of the
lack of rain from LA south, and that the area that can make up the big
crops is LA south. The Orange flow was cut short by cold weather here in
Central California and in Florida. Plant condition reports are not all
good from producing areas with some lateness of bloom due to local
weather conditions. The Dakotas are reported to look good, but Texas is
suffering from the lack of rain. Bee conditions overall are not great
with much makeup because of winter loss.
 
KJ>With the honey loan program nixed(so I hear), I thought that the market may
  >soften somewhat this fall, but may pick up at the end of the year.
 
Yes, no LOAN program on honey, but it should not make that much
difference as there are still banks open. As for the market it's all
guess work as in the history of honey marketing we as producers have
never have experienced. You can be sure the packers will be doing
everything to force the market down. The consumption of all sugars
was up in 1995 world wide and is expected to be up another 4-5% this
year.
 
KJ>One packer offered .90/lb. We're tempted to contract.
 
That is a very good price and may be the highest price you have ever
received. But so is the gas you buy... Cash sales made last week for old
crop white honey (as private report) were still at $1.01 cents per
pound delivered, drums back. All in all, the price you sell for is the
market price and .90 cents ahead of production is very nice with this:
 
WARNING!!
 
Honey packers have a history of not honoring early contracts. "yor honey
is dark'er, wet'er, or whatever" So be sure you have a real contract and
know your buyer. If the price is higher then .90 cents you will not have
a worry.
                         ttul  Andy-
 
 
 
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