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Pecans: new season becomes a challenge

October 7, 2021 at 12:27 PM , Der AUDITOR
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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

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