Pecan Market Update September 2022 Week 38

Compared to the US exports in 2020/2021, when records hit high, the stocks in the 2022/2023 season have depleted considerably. This is primarily due to the export slump in the 2020/2021 period, where figures ranged by 40% lower between September and July, as told by recent statistics issued by the American Pecan Council (APC). Suppliers hope that there will be a turnaround this year, with reports indicating that the Chinese are very interested in buying pecans right now. With the Chinese New Year taking place in January rather than February, contracts must be concluded sooner too.

US suppliers will not directly profit from the surge in demand though, due to the comparatively high tariffs still in effect for US pecans. China cut US imports by 73% between September and July. Even though exports to Germany have also decreased by 44%, it remains a target market for the United States. The issue with Europe is that the energy crises, due to the Russia-Ukraine war, have created massive inflation issues. Yet, the sharpest decline has been witnessed in Mexico, where the imports have been cut by more than 50%.

Meanwhile, US growers are getting ready to shake trees in the country's southeast, carrying early pecan varieties. It is expected that this year's crop will be good in most places except Texas. The very first crop production report will be issued in October. It is worth noting that while domestic demand peaks in autumn, consumption has increased and diversified over the years as consumer patterns have changed. Buyers will have to refill their stocks in the next few weeks to meet local household demand. We will let you know as we have more information.