News Archive

On October 31, 2014, Golden Peanut Company, LLC, a subsidiary of ADM announced that they had acquired Harrell Nut Company.  They also announced that with the acquisition, they would be changing their name to Golden Peanut and Tree Nuts.  A copy of the press release can be downloaded from the 'Presentations & Articles' page of this website.

The USDA, National Ag Statistics Service released their September Cold Storage Holdings this past Wednesday.  Using their figure, the 2014 US supply situation shapes up as follows (inshell basis):          

‘Those who cannot remember the past are condemned to repeat it.’ (George Santayana-1905). In a 1948 speech to the House of Commons, Winston Churchill changed the quote slightly when he said (paraphrased), ‘Those who fail to learn from history are condemned to repeat it.’

Normally I would not post two Pecan Market Updates within a week of each other, but due to numerous calls I’ve received since the release of the June Cold Storage Holdings yesterday, I felt it would be helpful to do so.

The USDA published the long awaited, much anticipated, 2013 final crop figure.  They estimated the 2013 pecan crop to be 266.3 million pounds (inshell basis). While earlier industry estimates had put the crop as low as 170 million pounds, based on Customs and Foreign Ag Statistics Data published over the past six months, it had become obvious that the crop had to be significantly larger.  While it will be several months before we have a final 2013 carry out figure, based on today’s release, 2013 total supply shaped up as follows:

                                                Component                             Quantity

                                    2012 Carry-Out                                      175,003,000

The Tri-State Growers concluded their annual meeting Friday with the first grower estimate of the 2014 pecan crop.  Using their figure, the 2014 US supply situation shapes up as follows (inshell basis):     

One cannot increase consumption without adequate supply.  Barring the introduction of artificial outside influences such as price supports, protective tariffs, etc., this is always true.

While the industry will not get a formal USDA crop estimate until July, with each passing day it is becomes more apparent that this year’s crop was much larger than originally forecast. Not only does it appear that Mexico had a larger than originally projected crop, but many within the industry now agree that both Georgia and New Mexico did as well. Even though uncommitted US inshell inventories continue to decline, mainly because China has stepped back into the market, cheap Mexican meats continue to come across the border at prices well below the current market. Adding to the problem is the addition of several new Shellers, who, hungry to enter the meat market at whatever cost, have also contributed to the current market malaise.

While the December export figures continue to show a decline in pecan exports over the same period a year ago, almost all of the decline can be attributed to the reduction in the amount of inshell purchased by China; down approximately 46%. This has not only resulted in low field prices, but has kept meat prices competitive with almonds and walnuts. As such, even though this year’s crop is approximately 170 million pounds smaller than the 2012 crop, the reduction in China’s purchases has allowed US Sheller’s to maintain, and in some cases expand, their meat sales to Europe and the US market.