Market Update: USA Pecan Nuts

Updated Cold Storage Numbers:

With one of the largest cold storage decreases of the last decade (Year Over Year), it’s clear that
pecan shipments are increasing as we move in the 2nd quarter. With a decrease of 21.96 million
lbs. (inshell basis) the industry is starting to emerge from many of the earlier challenges of the
season. A late harvest is finally being processed at typical volumes and logistic challenges are
decreasing (though still an issue for most ports).

Current Market Conditions:

A general economic slowdown and cost of living crisis in many of the larger pecan markets are a
point of concern. However, it is our view that pecans are not a typical tree nut commodity and
have historically demonstrated inelastic characteristics. While high inflation and logistic
challenges are concerning, the size of crop, markets in which they are consumed, and general
change in consumer habits allow for more consistent consumption when compared to other
larger tree nut crops.

Market Forecast:

We are predicting a stable market through the near term with the likely possibility that prices
continue to strengthen through the 2nd half of 2022.
The price spread between halves and pieces continues to decrease (less than $1.00/lb.). It is
likely that these sizes will be more dynamic moving forward as halves have already approached
historically high levels.
We will continue to keep you updated as the season progresses.