Pecan Market Insights February 2022 Week 7

With the Chinese New Year beginning on Feb 1st, we have seen a slump in the market. Since Chinese businesses have been closed for about two weeks to observe the celebrations for the "Year of The Tiger," there have been significant market changes that should be noted.

While China has never been an active, prominent trading partner for the US pecans in recent years, it once used to be one of the largest buyers. In previous years, for the month of November alone, China would buy enough pecans to take up nearly half of the pecan crop.

Part of the reason behind this is due to the trade war but also because China has found partners elsewhere. It is expected that China's interest in other US nuts will also fall and has continued to, but pecans have been hit the hardest.

While exports to other countries have filled the gap, export sales remain unchanged, with no indication of an increase.

The US domestic market is behind growth sales. Of course, there have been efforts to increase pecan consumption at home, but we will have to see what happens.