<p></p><p>California produces roughly 80% of the world's almonds. <br></p> <p>TOKYO -- International prices of almonds and walnuts have plunged as buying by major consumer nations such as China and the U.S. has slowed in the wake of record high prices in 2015.U.S. wholesale prices of almonds, the international bellwether, were recently in the $2.50 to $3 a pound range. The price climbed above $5 a pound last summer as the state of California, which produces around 80% of the world's almonds, endured its fourth year of drought, but plunged starting in December 2015.Some 40% of U.S. almond exports go to Asia. While there was some speculative buying in China in anticipation of higher prices, overall nut purchases have ebbed with the economy there. Moreover, traders in the Middle East cut back speculative funds invested in nuts in the wake of the drop in crude oil prices. Some Middle Eastern and Indian importers have defaulted on contracts, causing a glut of inventory.Even in the U.S., where low-calorie almond milk is popular, soaring prices suppressed demand. Meanwhile, the effects of the drought have eased, spurring a 3% year-over-year increase in shipping volume in January.The rise in international prices through 2015 has rippled to Japanese wholesale prices and has even affected retail prices, with Meiji Holdings announcing last summer that it was raising chocolate almond prices 10%. The confectioner says that whether a large drop in domestic wholesale almond prices leads to lower product prices and increased production will depend in part on foreign exchange rates and whether prices continue to fall.U.S. wholesale prices of walnuts have fallen rapidly as well, to around $2.80 a pound at present from around $5.50 last summer. Demand from the Chinese middle class has fallen off.A renowned cake shop in Tokyo's Setagaya ward says it has so far absorbed higher nut costs without raising cake prices, and that it is looking forward to the drop in nut prices. Some domestic wholesale prices have already fallen by 30% from last year, and the trend is likely to continue through the summer.<br></p><p></p>