Pecan prices are about steady across the US with supply expecting to come in well under the earlier industry estimates. Farmgate pecan prices were expected to increase after the losses reported from the southeastern areas including the major losses from Georgia, but there has been little movement toward the upside for pecan prices at the farmgate level. 

 

Prices in the southwest have started strong and appear to be holding for now as pecan imports from Mexico are slightly down from last season according the to the border crossing data*. As of January 20th about 95.5 million pounds have crossed the border into the US whereas last year about 117.5 million pounds has been imported, representing a decrease of 18.7%. 

The total pecan imports reported for last season is 241.8 million pounds which would put us at the 48.6% mark for total imports for the year last season. Last season CBP reports a total of 37.1 million pounds of in-shell and 102.3 million pounds of shelled pecans were imported. 

 

Fewer imports for the season could be helping to stabilize farmgate pecan prices here in the US southwest where reports are showing good quality Western Schley selling around $2.00 per pound in-shell. Last season in-shell prices were around $0.15 – $0.20 cents per pound less. 

The latest data available for US growers pecan deliveries is the end of November showing US pecan growers delivering 50,130,937 pounds while pecan imports at the end of November were 60,209,000 about 10 million more pounds than US growers had delivered for the season. This is certainly helping to keep farmgate prices in the US depressed but with a free trade agreement between the US and Mexico there is little US growers can do. 

 

US growers produce an average surplus of about 30 million pounds each year which needs to be sold abroad, and have been producing sufficient supply for the US market’s current demand. However with US based shellers and buyers looking to keep the prices low, many will import pecans from Mexico with the effect of lowering farmgate pecan prices in the US. An issue with this is that many US growers cannot produce pecans as cheap as what commercial prices are offering when imports are greater than US production during harvest time. 

*Customs and Boarder Protection (CBP) Automated Commercial Environment (ACE) as reported by USDA AMS Specialty Crops Market News