Pecan Update - Total supply remains unclear while prices continue to be firm
Pecan Supply Update:
Although the overall supply for the 2020 crop is unknown, the first cold storage number for 2021 was released last week, and it stands at 302 million pounds (inshell conversion at 44 percent ). This amount of cold storage in January tends to indicate substantial supply, and based on earlier crop estimates. Is most likely right. The American Pecan Council continues to place a high priority on improving macro-industry statistics, and as these figures increase, historical data becomes less useful. Many pecan industry organisations claim that production and consumption figures have long been underreported, and that we are now taking the first step toward more reliable results.
Current Market Conditions:
Overall, pecan prices have risen in Q1, especially for pecan halves (with several size shortages expected by the end of Q2). Pecan pieces are still weak, but they've improved over the last month, with some size shortages as well.
Our previous predictions have largely held true. As the number of COVID-19 vaccinations rises, markets will open up, resulting in an expected increase in demand. In February, Chinese demand from the United States increased, and this trend is expected to continue in March (which will likely be reflected in later reports).
Pecan prices are being supported by increased North American consumption and consistent demand from international markets. For the rest of the season, there will likely be a general price increase for all pecan sizes, with a focus on pecan halves. Pecan percentages are usually higher in a mixed-quality crop. Pecan halves make up a smaller percentage of the total. The most common sizes are likely to be in short supply as soon as the second quarter of this year comes to a close.
As the season progresses, we will continue to keep you updated.