Pecans: Growers remain resolute

Date: 8th December 2022 Category: Latest News
Pecans: Growers remain resolute

Mundus Agri: ATLANTA. With buyers willing to pay low prices and farmers reluctant to accept them, trade in the US pecan market has come to a near standstill. High demand and the prospect of a smaller crop are adding to the pressure.

Crop could be significantly smaller

As Pecan Report points out, growers have largely stopped selling their pecans on the open market at the moment, unless they can sell directly to consumers. The reason is that hulling facilities are only willing to pay low prices, which growers will accept. Meanwhile, the US harvest is still in full swing and farmgate prices have dropped significantly compared to last season, so the farmers’ displeasure is relatable. So many of the US and Mexican growers are now participating in this kind of "protest" that trading on the commercial market has almost come to a complete halt. Stocks are dwindling and the prospect of crop losses in Georgia and Texas and up to 30% lower crops in Mexico is putting massive pressure on the market.

Demand continues to rise

Global demand for pecans, meanwhile, remains strong and on a rising trend, so farmers expect processors and traders to buckle soon and pay reasonable prices to avoid losing their customers. They have been trying to stock up, but the high buying interest and tighter supply have made this process difficult. However, this also brings an advantage to traders, as the storage costs for nuts kept in cold storage are currently more on farmers. US shipments are slightly behind last year's levels so far this season, according to Pecan Report, but are now expected to pick up slightly as pecans are in high demand over the Christmas holidays.