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Pecan Market Stable with Bullish Tendencies

Pricing data for the pecan market showing bullish tendencies as the supply capacity drops slightly while demand continues to set new records. 

 

The in-shell pecan market has picked up this year for growers around the southern US as traders, accumulators and shellers have seen more activity and interest this year as compared to last year. This could be largely due to the onset of the trade war last year only a few months before the North American harvest was set to begin. 

 

This year however has seen significantly more activity during the first months of the harvest season for pecans in North America. Exporters have been much more active in the market while imports from Mexico hit all time highs for yet another consecutive year setting new records. 

  • high speed industrial pecan cracker

 

Several years ago, American pecan growers set out to increase public awareness about the health benefits of pecans for the human heart, as well as weight loss benefits, and cognitive function in the human brain. While the pecan growers continue to build even more data with research studies, the health message is spreading, both domestically and abroad. 

 

Pecan exports have been on the uptick, while domestic consumption spiked to a staggering 15% in the first quarter of this year’s harvest season (sept-nov). The American pecan growers’ budget is minuscule when compared to Almonds or Walnuts, however the council has been quite effective nonetheless. 

 

While the pecan industry has been thriving, it has not been without challenges. The US-China trade war was a major blow to the industry, as American growers has spent several years developing the Chinese market, only to have the door closed abruptly when the trade war ensued. Severe weather has also taken its toll on growers with Hurricane Micheal taking nearly half of Georgia’s crop last year, and still having effects on this years crop as well. However despite all the challenges, the American growers have been able to increase both consumption and production at a fairly manageable pace. 

 

 

While the market is down from highs of 3 years ago, pecan prices continue to steady with bullish tendencies as prices continue to inch upward. Now with rumors that China will purchase large quantities of pecans from the market prices have continued to trend slightly higher. For now we can see that inventories for raw material are slightly down, likely due to the large losses from Hurricane Michael over the last 2 seasons, but shipments continue to increase. If China does renter the market any time soon, we can expect prices will likely increase at a faster pace.