Pecan Market Update - July 21
Raw material prices have risen dramatically in the recent ten days. With limited raw material available in the North American market and increased demand for late-season contracts, this pricing pattern is likely to continue into the following crop.
The market is predominantly driven by demand from North American customers, but international markets (such as the EU and the Middle East) have bolstered the market and are providing a floor and momentum for pricing.
Pecan prices are expected to rise into the new crop, based on early forecasts, likely demand from the Chinese market, and existing world supplies. Inventory levels in the Chinese market are already extremely low, and with a smaller-than-expected South African crop, we expect strong demand for the first accessible North American crop. (and pay a premium price for it).
A general price increase for all pecan sizes will most certainly continue into the next season, with a focus on pecan halves. Shortages of various sizes are happening and will continue till fresh crop availability. We recommend that all buyers cover well into Q1 2022, since the first available new crop will likely cost a premium. With present availability falling significantly, we recommend that all buyers cover well into Q1 2022.