Pecan buying activity picked up significantly last month as growers shipped just shy of 41 million pounds to buyers for shelling and delivery to end customers. The industry has been in a bit of a price war among growers and middlemen who shell and supply end users.
Many of the shellers and accumulators have stockpiled enough supply in cold storage to slow buying activities for several months. However, with demand continuing to increase month over month, the reserve pecan stocks are dwindling faster than expected.
Last month growers delivered a whopping 40,794,045 pounds (18,503 mt) into the supply chain as compared to 19 million for the same month last year, more than doubling the amount supplied over the same time last year. But the news is bittersweet, while this did bring the total deliverables up 5.8% for the year, the on the farm prices have been slightly depressed as buying activity for US growers waned for the prior 3 months.
Even as some industry middle men propagandist place downward pressure on pecan prices at the farm level, with attempts to use the current pandemic as a backdrop for claims of industry shutdown and flooded market supply. The industry reports shed light on the false claims, showing demand continuing to soar right through the pandemic as more health conscious humans demand more pecans. But some growers have had no choice but to sell at lower prices as many are unorganized and devoid of coops that allow for better bargaining power.
Even as deliverables have increased 5.8% over last year, handler inventories are still slightly down, and commitments to ship are still increasing. No matter your position in the supply chain, whether that be grower, sheller, or propagandist; this is good news for the pecan industry as a whole. Even better news is to see one the most environmentally conscious industries in the world, operate such a solid and safe global supply chain during a time that no industry has prepared for.