Nuts

Pecans: new season becomes a challenge

October 7, 2021 12:27 PM, Der AUDITOR
Show report in German
Play report as audio

ATLANTA. High demand and smaller crops are fuelling market players' fears that supplies may run short in the 2021/22 season. Chinese buyers are already stocking up for the New Year celebrations in February.

Shipments up sharply

As Pecan Report states, some pecan farmers in the southeastern USA have already started harvesting the early varieties last month. This is very much welcomed by all market players, as stocks are so low this year that the new crop is eagerly awaited. According to the American Pecan Council (APC), this is mainly due to the massive increase in demand compared to last season. Although the August report has not yet been published, deliveries up to and including July were already a good 31,750 mt above those of the 2019/20 season. Among other things, the APC's marketing concept, which was able to significantly increase domestic consumption, contributed to this, and export demand, especially from China, has also increased noticeably. Chinese buyers are already concluding larger contracts to meet demand for the Chinese New Year that is taking place between 1 and 11 February 2022.

High crop losses in Mexico

With regard to this year's crops, Pecan Report sees the biggest problem in the low stocks. In the USA, the crop is expected to be average at best, as there are still many old trees in the plantations in the main growing region of Georgia, which bear fewer nuts than younger pecan trees. In Mexico, the prolonged drought in the summer caused many farmers to lose large parts of their crop. With cold storage stocks in the US already a good 18,000 mt below last year's, according to the USDA, demand in the 2021/22 season could potentially even exceed supply; either way, it will be a challenge for suppliers as well as buyers.

Despite the prospect of low availability and accompanying increases, European spot market prices have risen only slightly compared to last week. Fancy Junior Mammoth Halves currently cost EUR 10.75/kg FCA Spain.

Pecans

Origin, type

EUR/kg

USA, shelled, Fancy Junior Mammoth Halves, FCA Spain

10.75

Südafrika, shelled, Large Pieces, FCA DP

6.95

Trade sources

View more information 
- price charts

Are you interested in pecan nuts?
Visit our top seller pages. Here you will find exclusive market reports, offers and prices and crop data.
Find out more

View related articles

Go to the News Overview
Nuts
Jun 23, 2022
Hazelnuts: from bad to worse
ORDU. Attention has certainly shifted towards the new hazelnut crop in Turkey. Demand is frustratingly low and suppliers are using creative means to change this. Things will, however, turn from bad to worse for many hazelnut manufacturers in Turkey.
Nuts
Jun 22, 2022
Walnuts: traders want to part with stocks
SACRAMENTO/SANTIAGO. At the end of the season, walnut shipments from the USA pick up once again. The overall weak export results of the season so far increase the sales pressure on the supplier side.
Nuts
Jun 22, 2022
Cashews: Vietnam's imports down significantly
HANOI. As Vinacas announced, Vietnamese imports declined noticeably year-on-year in the first four months of 2022. The country's exports are also lower than last previous year, although the decline here is more moderate.
Nuts
Jun 22, 2022
Pistachios: hard choices
TEHRAN. As accurate statistics on Iran’s annual pistachio production are lacking, it is challenging to issue reliable forecasts. Fact, however, is that spring frosts have caused extensive crop damages in the past two years and that farmers have lost large amounts of money. Yet, water scarcity is the most serious threat as growers are already confronted with the harsh realities of climate change.