The phase one trade deal between China and the US has helped push pecan exports to China to some of their highest levels since the onset of the trade war. Pecan exports to China have fallen considerably since before the trade war, however the phase one trade deal has offered a reduction on the extremely high tariffs. While China will likely not meet the agreed upon purchase targets, trade of ag products is improving.
The APC released the October position report detailing the current state of the American pecan industry. Pecan demand has again pushed higher for the month of October when compared to last year same time, showing a 4.5% increase over last October. This season started strong with the single largest month on record in September with slightly over 48.5 million pounds being shipped in September. This was a whopping 17 million more than the previous season start.
The American Pecan Council has been working diligently to improve awareness and ultimately consumption of pecans in the US and abroad. So far the road has been rocky but improvements are being made. Even with the trade war and a global pandemic, demand for pecans continues to push higher year over year.
Domestic shipments for the month of October fell by 3.5 million pounds representing an 11.4% decrease over last year at the same time. However, export shipments increased 5.2 million pounds or 87.3% bringing the total shipments into positive territory, up 4.5% for the month of October.
While exports to multiple regions are up for October, China was the single largest increase 4.4 million pounds, most of which was in-shell pecans to mainland China. Exporters and growers alike have been happy to see the increased demand to what was once their largest trading partner. Prices on the farm have been lagging with fewer in-shell buyers since the trade war began. Now that prices on the farm are at their lowest in a decade, more in-shell buyers could help push prices back into profitable territory.