Market update: Pecan Nuts
After the North American crops in 2021 were lower than hoped for, some suppliers are now worried about whether they will be able to fulfil all their contracts. So far, growers are hopeful for 2022.
In the southern USA, pecan trees are increasingly coming to life. As the experts from Pecan Report explain, the first small, green nuts are currently being formed and the growers are busy supplying the trees with nutrients, fertilisers and insect protection. Meanwhile, in the southern hemisphere, harvesting has begun in growing countries such as South Africa, Australia and South America. After last year's relatively low US crop of just over 117,000 mt, farmers are hoping for an "on-year" with better yields in 2022. It is certain that Georgia remains the most important growing state, and New Mexico is also in the focus of producers. (Mundus-Agri)
The final numbers have been released last week, showing one of the biggest pecan-growing states (Georgia) harvested considerably less volume than expected. As they say, a short crop only gets shorter, an already projected lower crop volume came in 20 million lbs. shorter than original projections. (NPSA)
Crop Recap, Spring 2022
Pecan prices have surged up in the last 6 months, this has in part been due to an even bigger decrease of the forecasted crop and an increasing domestic demand from the USA.
Prices on the European spot market have risen again in recent weeks, partly due to high freight costs, but also because of low availability.
Southern Roots has the current projections for the upcoming crop (NPSA):
- USA – 300 million lbs.
- Mexico Imports – 275 million lbs.
- Carry-In – 121 million lbs.
- Total Available – 696 million lbs.
Supply is expected to be down from this year due to the low carry-in, 696 million lbs. against 711 million lbs.