Commercial pecan growers have largely stopped selling pecans into the open market unless its direct to consumers as the commercial shelling industry hunts for bargains with lowball offers.
Pecan harvest is in full swing and buyers are hunting pecans diligently as growers refuse to sell at current offerings. Farmgate prices in the commercial market have plummeted from early season highs as the consolidated buyer pool works to drive prices to new lows not seen in years.
While the retail market continues strong, farmers who sell into the commercial wholesale market have seen prices plummet this season. While a few sales are being made most growers are wise to these tactics and have opted to not sell.
Enough growers across the US and Mexico have refused to sell that now we are seeing a complete slowdown in the market. Harvesting continues in full force, but trade has all but stopped on the commercial market from farm to sheller / broker.
With Mexico now reporting a smaller crop by nearly 30% and Texas expected to come up short this season growers are watching supplies dwindle and waiting for buyers to sharpen their pencils.
With demand for pecans continuing to rise around the globe, growers expect that its only a matter of time before commercial shellers and brokers get desperate and increase offerings in order to keep their end customers happy.
Current spot market prices are significantly lower than in previous years while inventories are trending lower and dropping fast now that new crop is not refilling the supply chain. Retailers from across the US are searching to find new crop as multiple states are reporting lower than expected harvest.
Growers have been much more coordinated in their efforts this year and have been encouraging other growers to hold their crop and not accept the low offers currently coming in.
Buyers on the other hand have made efforts to increase inventories but this past year has made that much more difficult with increasing demand and a global supply that is not keeping pace. Deals are still being made, but they are few and far between as most pecans are going straight to cold storage.