The pecan market has started strong already in late September as buyers are eager to get new pecan crop in the stores and on the shelves both here in the US and abroad. The wholesale pecan market activity has been increasing over the summer and demand has continued to increase throughout the season.
The American Pecan Council will be releasing the final report for the 2020-21 season (Sept – Aug) and the reports, unless drastically updated, are already showing demand at 21.49% ▲ percent above last season. Currently shipments are 48 million +/- pounds over the total of last season with still one month of reporting left. Demand has been strong over the last season as lower farm gate prices have helped move inventory and increased demand from both China and the US.
Prices have continued to firm over the last few months as pecan shipments spiked in March and then again in May, last season started off with the largest September shipments since the APC began monthly reporting.
Oversize (OVS) has increased with interest from China which in turn is pushing Mammoth halves (FMH) higher coupled with demand in the United States. Jr. Mammoths (JMH) have held firm as well with a slight increase since March. Overall the market has been firming and prices have been inching up as demand increases.
USDA Cold Storage holdings show lowered inventory from last year, and the APC is also reporting the lowest July pecan inventory on record. This is good news as new crop comes in but as Mexico is reporting a smaller crop and the US is expected to have an average crop this year hopefully current inventories and new crop will be enough to carry us through the season without sending prices to unsustainable levels while we continue to grow demand in the US and around the globe.