Uncertainty in the market
The situation of this year's US pecan crop continues to be opaque and the experts of Pecan Report again state that one should not blindly trust the frequently changing data of the American Pecan Council (APC). What is confirmed by market players is the fact that cold storage stocks are low this year; they are said to be the lowest in the last decade. Traders are also running low and at the moment it does not look as if this year's crop will be able to compensate for this. There should be clarity on 12 October when the US Department of Agriculture's National Agricultural Statistics Service (NASS) will publish its first forecast.
US pecans are in demand
Georgia, one of the most important growing states, is expected to harvest less than 100 million lbs, according to Pecan Report. There are still many old trees in the plantations here, which are now yielding less, but even the young trees do not look very promising for the new season so far. Hurricane Idalia hit the southeast of the USA at the end of August and did not spare pecan plantations in Georgia and North Carolina, causing crop damage. In parts of Texas, however, farmers are complaining about the severe drought, which will have a negative impact on yields. This is aggravated by the fact that the trees in the USA are in an "off-year".
However, there is good news from the demand side, as Chinese buyers are busy stocking up and will probably remain the most important market for US pecans in the new season. At the same time, new markets are being opened up with Korea and India, for example - the increase in consumption is already clear and will continue.
The beginning has been made
A new entrant is now also trying to gain a foothold in the world pecan market: Growers in the Brazilian state of Rio Grande do Sul managed to ship a consignment of their pecans to the Middle East for the first time last year after meeting the conditions required for export. This is reported by the news platform DatamarNews. While this was only a small grouping of five growers and a shipment of 25 mt so far, both the group of growers and the export volume are expected to grow for 2023. In addition to the Middle East, an Asian buyer is now showing interest in the Brazilian product, so it seems that a start has been made and growers are encouraged that they may soon be able to make higher profits from overseas sales.