Nuts

Pecans: demand from China has recovered

September 21, 2021 12:23 PM, Der AUDITOR
Play report as audio

ATLANTA. The harvest of the early pecan varieties has begun and producers can achieve good prices, not least due to the high demand from China. The fact that there are hardly any goods from the old crop left in the warehouses is also pushing prices up.

Farmers achieve good prices

In northern Mexico, pecan farmers started harvesting the early varieties last week. Buyers are already putting out feelers and making the first offers to growers - much earlier than last year, as Pecan Report reports. Since demand is relatively high, farmers are currently in the comfortable position of rejecting offers they consider too cheap. A big advantage for American suppliers is the fact that China is back in the market. Since the trade war began in July 2018, it has been difficult for growers and producers to achieve good prices. Before that, China was one of the main buyers and now that tariffs have been lowered again, sales of US nuts to China are recovering.

USA fights supply bottlenecks

Because the harvest in the eastern USA usually starts only a few days after that in northern Mexico, a much larger volume of early pecans should soon be available on the market. With hardly any stocks left in cold storage, prices on the European spot market have continued to rise. Fancy Junior Mammoth Halves are now trading at 10.65 EUR/kg FCA Spain. If demand from China remains constant or even increases further, the US will be hard pressed to make up for the gap that already exists between supply and demand. The country already has to import large quantities of raw materials.

German imports of US pecans remain stable

At 3,712 mt in the period September 2020 to July 2021, German imports of US pecans remain almost unchanged. Second place among the most important suppliers for Germany is occupied by Mexico, albeit at a considerable distance; imports from the USA are almost 13 times higher than those from Mexico. Although German imports from the Netherlands increased by a full 375%, they are still relatively low at 152 mt.

Pecan* imports, Germany, in mt

Country

2019/20

2020/21

Diff.

USA

3,713

3,712

0.0%

Mexico

241

289

19.9%

Netherlands

32

152

375.0%

South Africa

39

57

46.2%

Peru

48

48

0.0%

Others

28

45

60.7%

Total

4,101

4,303

4.9%

Federal Statistical Office of Germany / Sep-Jul

*08029010 Fresh or dried pecans, whether or not shelled or peeled

View more information 
price charts

View related articles

Go to the News Overview
Nuts
May 25, 2022
ORDU. Over the last few weeks reality has kicked in that sufficient supplies are available, and attention shifted more towards the new crop. At present, the mood is, however, shifting in Turkey’s hazelnut market. Issue are strange dynamics. The market may also have to adjust production estimates for the new crop.
Nuts
May 25, 2022
MADRID/SACRAMENTO. While almond production will range 4% lower in California at 2.80 billion pounds, things are also far from encouraging in Spain. According to the National Nut Board production will range 30% lower than last year. Judging by experience, however, the estimates presented by this organisation tend to be rather conservative.
Nuts
May 23, 2022
NEW DELHI. Although the prices for peanuts have fluctuated in a narrow range in India in recent weeks, traders reckon that this is about to change. Issue are global factors, especially since production is under the weather in Brazil. Recently updated production estimates, however, tell a different story.
Nuts
May 19, 2022
ORDU. Economists reckon that Turkey is witnessing an unprecedented economic crisis of epic proportions. Hazelnut suppliers report the inflation is much worse than official figures suggest, and exporters are dealing on slippery grounds. The production estimates issued at the International Nut and Dried Fruit Congress also illustrate some surprising trends.