The pecan inventories in the US have dropped since the August year end inventory was reported last year. Each year the American Pecan Council reports the year end inventory for pecans in the hands of first handlers in the US.
At the end of last season first handlers were holding just over 400 million pounds of pecan inventory for shelling, bagging and shipping to end users. Since the end of last season pecan shipments have showed positives signs by outperforming last years shipments year to date by 10%*
Since September the pecan industry in the US has shipped just shy of 316 million pounds as of June 2020 which is 10% higher than the same time the previous season at just over 287 million pounds shipped as of June 2019. This is welcomed news as pecan farmers have struggled with lower prices since the onset of the China US trade war. China previously purchased large portions of the southeastern pecan crop prior to the increased tariffs as a result of the trade dispute.
Pecan purchases have fallen. As the global pandemic has set in and the global economy attempts to adjust, many businesses have seen revenues fall. As the pecan industry has been largely unaffected by the social distancing, it is the consumer behaviors that have growers and accumulators concerned. First handlers have opted to take a much more conservative approach to this year’s crop. Pecan purchases from growers have fallen slightly to date even as pecan shipments continue to rise.
With enough inventory to supply around eight months worth of shipments, the brokers and first handlers are taking a much closer look at contracts and inventories. Most shellers and accumulators have opted not to take big inventory positions until the upcoming contract season will shine light into the demand for many of the ingredient users. So far this season the US pecan industry has shipped roughly 12.5 million pounds more than purchased from growers.
*All data is converted to In-shell unless otherwise noted
*APC adjusted totals