Global Pecan Market: Rising Prices, Supply Shortages, and Future Insights for Traders

The global pecan market is undergoing significant shifts in production, quality, and trade dynamics. From hurricane damage in the U.S. to expanding export opportunities in South America and Asia, pecan production is poised for a transformative year. This comprehensive update explores key trends, pricing, and tips for traders, particularly for those in the UAE, a critical logistics hub for global trade.

Pecan Production and Key Exporting Nations

1. United States:
   • Production Impact: Hurricane Helena severely damaged pecan orchards in Georgia, with up to 90% loss in some areas. Long-term effects could take over a decade to recover due to the destruction of mature trees.
      
   • Quality Concerns: Heavy rains in East Texas this year may lead to fungal issues, affecting nut quality.
      
   • Export Data: The U.S. exported over 34 million pounds of pecan kernels and 49 million pounds of shells in the 2023/24 season, with a 30% increase in shipments to China.
     
      
2. South Africa:
   • Harvest Update: South Africa’s harvest totaled approximately 28,500 tons, with 25,000 tons meeting export quality standards—a 31% increase from the previous year.
      
   • Export Dynamics: About 90% of South African pecans have been sold to China, with robust demand from Europe.
     
      

3. Mexico:
   • Production Status: Mexican pecan harvests were impacted by Hurricane Helena, with processors reporting steady demand but slower purchases due to currency fluctuations.
     
      
4. Brazil:
   • Emerging Exporter: Brazil is entering the Chinese market with Pecanita, a certified processing company. The 2025 harvest is projected to yield 1,000 tons for export.
     
      

Global Market Insights
 

• Tight Supply: Global in-shell pecan supply is estimated at 365,000 tons, while demand is projected at 299,000 tons. With lower carryover stocks (~65,000 tons), supply remains tighter than previous years.
   
• Rising Prices: A tight supply chain, coupled with increased global demand and rising prices of competing nuts (almonds, hazelnuts), is pushing pecan prices higher.
   
• Future Trends: Prices are expected to stabilize by early 2025, but any USDA-confirmed production reductions could drive prices upward.

Harvest Seasons for Major Producers
 

Pecan Quality and Market Preferences
 

1. China: Leading importer of South African and U.S. pecans. Demand remains high despite price increases.
    
2. Europe: Growing interest in pecans, with inquiries matching robust market demand.
    
3. U.S. and Canada: Steady purchase volumes, with focus on quality consistency.
   
    

Tips for UAE Traders
 

• Capitalize on China’s Demand: The UAE’s logistics capabilities make it an ideal hub for re-exporting pecans to China. Leverage the growing Asian market for premium pricing.
   
• Diversify Sourcing: With U.S. production disrupted, traders should explore suppliers in South Africa and Brazil for high-quality pecans.
   
• Storage Strategy: Rising global demand suggests traders should secure inventory early to benefit from anticipated price hikes.
  
   

Conclusion

The pecan market is entering a pivotal phase, with rising prices, tighter supplies, and new export opportunities. UAE traders are uniquely positioned to capitalize on these trends by acting as a bridge between key producers and global markets. As the industry evolves, staying informed and agile will be essential for success.

FAQs
 

Q1: Who are the largest producers of pecans globally?
The U.S. leads global pecan production, followed by Mexico and South Africa. Emerging exporters include Brazil, which is entering the Chinese market.
 

Q2: When is pecan harvest season?
Pecan harvest occurs between October and November in the U.S. and Mexico, while South Africa and Brazil harvest from April to June.
 

Q3: What is driving current pecan price trends?
Prices are rising due to tight global supply, hurricane impacts in the U.S., and increasing demand in Asia and Europe. Competing nut prices also contribute to the trend.
 

Q4: How can UAE traders benefit from global pecan demand?
UAE traders can leverage the region’s logistics infrastructure to connect producers from South Africa and Brazil with high-demand markets like China and Europe.
 

Q5: What quality issues are affecting the 2024 pecan crop?
Heavy rains in East Texas and hurricane damage in Georgia have raised concerns about fungal diseases and overall nut quality.
 

Q6: Which countries are the main importers of pecans?
China is the largest importer, followed by strong demand in Europe and stable markets in the U.S. and Canada.
 

Stay informed with Momex for the latest global trade insights and trends.