Pecan inventories in the US have fallen as demand for the nut rises, and an “off crop” year this year is expected to further tighten supplies.
The decline has been driven by strong demand for pecans, which are used in a variety of products, including candy, baked goods, and snacks.
The APC collects data from pecan handlers in the US and while the data is regularly changed with out notice, the changes have been minimized to only a few million pounds each month as of lately. The data has shown a significant decline this season and continues to trend lower.
The combination of falling inventories and slower production increases is expected to lead to tighter pecan supplies in the near future. Growers are planting new orchards in response to the increasing demand, however the supplies are currently not increasing as quickly as demand.
Pecan growers in the southeastern US are entering hurricane season and will be watching for inclement weather. Many growers have begun hedging their orchards as a way of reducing damage from high winds during the annual hurricane season here in the southeast.
Since Hurricane Micheal in 2018 inventories have yet to recover and if demand continues at current rates inventories will likely not recover any time in the foreseeable future. Imports from Mexico have helped to shore up the falling supplies however since the onset of the APPB’s import assessment on pecans, fewer pecans are being imported into the US. This will continue to place pressure on domestic growers to increase supplies.
For a look at the historical and current data for pecan handler holdings and inventories be sure to click the link below.