Pecan Nuts, market update 10.02.2023

Mundus Agri. US Pecan Demand Rising But Driven by Domestic Market

US demand for pecans has increased by 10.5% this season, with 155 million pounds shipped between September and December 2022, a 14.7 million pound increase from the previous year. However, exports tell a different story with only 25 million pounds shipped, a decline of 18% from the previous year.

China's Zero-Covid Policy Impacts Exports China, previously the leading export destination for US pecans, has declined sharply with a 53% drop in shipments due to their zero-Covid policy. Although this policy has been abandoned, it is uncertain if demand will recover this year. Canada has replaced China as the leading export destination, with shipments nominally up, while the UK and Israel have also seen an increase in shipments. However, Germany, the Netherlands, and South Korea have recorded declines.

Shortage of Supplies Handler inventories are 31% lower than last year, meaning that more imports may be required in the coming months. Imports from Mexico have increased by 42% this season, reaching 5.43 million pounds. Crop receipts have also risen to 53.55 million pounds, but growers are struggling to increase production as it takes seven years for pecan trees to become commercially viable.