US Pecans, Market update 07.03.2023

Mundus Agri. Demand for pecans has bounced back in China. As the USA shipped more than 6 million pounds to here in January the tide has started to turn for US exports.

Not quite there yet

China, in fact, accounted for more than 60% of the entire 9.175 million pounds exported in January as the recent position report issued by the American Pecan Council shows. Although monthly exports also ranged 49% higher in January 2023 than the 6.143 million pounds shipped overseas in January 2022, total exports for the season, however, continue to lag 6% behind last year at 33.828 million pounds. While exports to Canada are also 6% down, shipments to Israel were relatively firm. Exports to Germany, the Netherlands and Saudi Arabia have, however, declined sharply.

Supply is the issue

As Pecan Report, however, states, the American Pecan Council is keen to drive up demand in countries such as Germany and confidence prevails that this will succeed. Trouble this season, however, is that handler inventories have declined to the lowest level seen since 2018/2019, whereas domestic demand has risen sharply on last year. Growers are, in addition, not quite satisfied with farmgate prices as they have failed to rise on last year, which has prompted many to put part of their supplies into cold storage in the hope that prices will rise. General supplies will indeed be down next season as growers in Georgia anticipate an off year in production.