Early market pecan prices have been on a bit of a roller coaster in the commercial wholesale market as buyers attempt to coordinate lower offerings putting downward pressure on market prices.
The commercial wholesale pecan market is usually volatile this time of year as growers field offers from buyers, the shelling market in the US, or at least what’s left in the US, has narrowed to a much smaller group and has allowed buyers to coordinate much better than growers who are scattered across the southern US and have little contact with each other.
Low price offers are commonplace in the early market, but this year even with lower inventories, price offerings have been falling. Most growers, or at least the ones who have been around the block a time or two, understand this dynamic and simply ignore it. However, when newer growers show up and accept these lower offerings it helps to set the tone for overall lower farmgate prices.
This season is of course no different and offerings are coming in quite low as harvest is coming into the warehouses. So far most growers have already made plans to go straight to cold storage with most of their crop, but some growers have no choice but to sell as they come in with limited storage available, they will need to make room for more crop to come.
Early planning allows the more savvy growers to have cold storage lined up and waiting so as to prevent being forced to accept lower price offerings. Some growers have begun installing their own cold storage facilities. Even still companies offer temporary onsite freezer units to store pecans in bulk.
Gone are the days of being able to sell all of your pecan crop at harvest for top prices, as buyers become more competitive we will see growers need to do the same, and store a portion of their crop in order to attract top market pricing.