Pecans: let the games begin
November 24, 2022 at 12:57 PM ,
Der AUDITOR
Familiar dynamics
As usual at this time of year when the harvest is nearing completion, prices are down in the US pecan market. Pecan Report explains that growers are currently soliciting bids from potential buyers. Since the group of buyers, especially the large hullers, is much smaller than the farmers spread throughout the southern US, better arrangements can be made. As a result, prices have fallen despite low stocks. According to Pecan Report, experienced growers are already aware of this dynamic and ignore the development because they are not willing to sell their goods below value. There are, however, some new entrants to the market, some of whom are accepting the low prices, which is lowering farmgate prices overall. All in all, the market is currently quite active.
Most of the goods stay within the country
In the Southeast, too, the harvest is now coming to an end and most growers have decided to store their new produce directly in the cold stores. Only those with limited storage capacity have to sell at least their old goods now to make room for the new crop. Last year, prices had risen during the season as stocks dwindled; farmers and traders are hoping that they, too, will be able to sell their refrigerated goods at better prices at a later date. Much of the US produce is going to domestic traders and shellers, as China, a former major buyer, is increasingly buying pecans in Mexico. Various forganisations are doing a good job of opening up new markets, but here, too, good things take time.
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