Chile: Weak Euro impacting nut exports
Even though export markets for Chilean prunes and walnuts have diversified to the point of reaching…Even though export markets for Chilean prunes and walnuts have diversified to the point of reaching over 75 countries, the European Union is still a critically important trade destination. For this very reason, the behavior of the euro over the last few months could have an impact on the prices and volumes shipped to the old continent.
Coinciding with the beginning of the 2015 export season in April, Europe’s currency experienced its worse quarter since its inception, deprecating by 11.3%, with an exchange rate of 1.07 euros to the US dollar and chances of even dropping to a one-to-one rate. This weakness is mainly due to the policy of the European Central Bank, which is attempting to reactivate the economy by devaluing local currency.
The trade union is forecasting a probable effect on prices, but it is still too early to anticipate the real effect the euro will have throughout the entire season.