We would like to update you with the latest information of the Pecans kernels market, based on the market information that we obtained from our partners at origin.
Over the last few months buyers have been covering heavily and shipments have been fairly strong. Now over the last few weeks there has been a notable slow down of this as processors look to take stock of there positions and forecast there balances to see them through until the end of the season. Prices have been fairly stable and most processors are sold or close to a sold position.
The quality for the current crop has been, for the most part, very good.
Early estimates and weather patterns are already pointing to a short crop for next season, that said tariffs in China will have an impact on requirements and it’s not unlikely that these two events could offset each other from a supply and demand picture.
We expect pecan prices to firm slightly and then remain stable for the rest of the season.
We are recommending that buyer’s cover their pecan demand through the new crop (late 2018). With shippers expecting to receive a premium for carrying the raw material holding these in cold store warehousing, and with generally little limited supply, it’s best to take cover sooner rather than waiting.