Mundus Agri. As every year at this time, buyers try to drive down prices in the US pecan market. Experienced growers already know this game and do not get involved, while the new market players sometimes act less prudently.
As usual, at this time of year, when the harvest is nearing completion, prices are down in the US pecan market. Pecan Report explains that growers are currently soliciting bids from potential buyers. Since the group of buyers, especially the large hullers, is much smaller than the farmers spread throughout the southern US, better arrangements can be made. As a result, prices have fallen despite low stocks. According to Pecan Report, experienced growers are already aware of this dynamic and ignore the development because they are not willing to sell their goods below value. There are, however, some new entrants to the market, some of whom are accepting the low prices, which is lowering farmgate prices overall. All in all, the market is currently quite active.
Most of the goods stay within the country.
The harvest is also ending in the Southeast, and most growers have decided to store their new products directly in cold stores. Only those with limited storage capacity have to sell at least their old goods now to make room for the new crop. Last year, prices had risen during the season as stocks dwindled; farmers and traders are hoping that they, too, will be able to sell their refrigerated goods at better prices at a later date. Much of the US produce is going to domestic traders and shellers, as China, a former major buyer, is increasingly buying pecans in Mexico. Various organizations are doing an excellent job of opening up new markets, but here, too, good things take time.