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Pecans: supplies fall short of demand

December 18, 2024 at 11:15 AM , Der AUDITOR
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MEXICO CITY. Light supplies and high demand are driving the market for pecans. A supply squeeze is looming large. Drought spells trouble for next year’s crop in Mexico.

Light US supplies

With harvesting underway reports are far from encouraging for pecans this season. As Mexican exporter Pecaninis highlights supplies are the issue. They are urging customers to act fast. Apart from New Mexico, where the harvest will start when frost arrives, growers are busy collecting nuts in North America and in Mexico.

USDA reports uniformly state that supplies are very light throughout the different states. In addition, the Mississippi Pecan Growers Association illustrates that last year’s drought coupled with very dry conditions in summer have impacted the quality of this year’s crop. Trouble is that on the 18,000 acres where pecans are grown only a limited scope is irrigated, which makes the trees particularly susceptible to nut drop and remaining nuts being unable to fill out properly. Harvesting will continue until January in orchards where the nuts cannot be shaken from older and bigger trees.

Drought big worry in Mexico

In Mexico, the continuing drought is also a big worry. Reservoirs and dams are at alarmingly low levels, which will make it impossible for many growers provide enough water for their trees. Unless the country witnesses a lot of rain in June to September, the output and quality of the next crop will be low. If the incoming US president imposes the announced 25% tariff on all imports from Mexico after resuming office in January, US pecan prices will certainly rise as the country largely depends on imports from Mexico.

Supply squeeze in 2024/2025

As demand is high prices are on the rise with current quotations ranging at USD 5.15/kg CFR Europe as Pecaninis states. Expectation is that this trend will continue, especially since good quality is difficult to find and sales are strong, particularly in the USA, Canada Mexico and Europe. There will not be enough pecans to meet total market demand in the current season.

 

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