January Cold Storage Figures Lowest in over Ten Years
March 03, 2023
While the laws of supply and demand generally dictate market pricing, that is not always the case. Geo-political issues, natural disasters and other unrelated issues often act to undermine the market. Such is the case with the current pecan market. Inflation, high interest rates, the War in Ukraine, logistics problems, etc., have all served to undermine the market even though, unlike the almond and walnut industries, there is a shortage of pecans. On February 23rd, the USDA released the January Cold Storage figures. Looking at the supply situation a little differently, i.e. days of available supply, the industry is at its lowest available supply in over ten years. Even with consumption considerably below what was expected, should it continue at its current reduced level, the industry will carry out less product than a year ago.
Days of Available Supply
Eventually supply will become the principal dictator of price. Until then, there is no need for the industry to continue giving away the product, especially pieces!