The pecan meat markets opened stronger today on higher volume. As the first quarter of the 2018 pecan season continues on, many pecan industry professionals believe pecan meat prices will continue to rise into the second quarter.
So far this year pecan prices have been good across the board for both in-shell and shelled pecans. In the beginning of the year JR Mammoth Pecan Halves were trading at $6.40 per lb, and have since climbed to $6.45 per lb, an increase of $0.05 for the first 30 days. Now, with inventories better established and shellers running at near full capacity, most pecan industry professionals seem to believe that prices will continue bullish through the second quarter of 2018. But it’s not all smooth sailing for pecan shellers. The pecan industry is continuing to deal with growing pains. The demand for pecans in the international markets has continued to rise over the last decade, and the supply capacity has not been able to keep up. The supply end of the equation continues to improve but not nearly as fast as the demand. Growers continue to plant more acreage and new growers enter the market, but currently its not enough. Shellers also face similar difficulties, shelling capacity for the industry is struggling to keep up. We have seen smaller to medium sized shellers entering the market, but with the marketing activities of the American Pecan Council, the industry will more shelling capacity to handle the domestic market in the US. Until these needs are met, prices are expected to continue upward.