Hurricane Michael undoubtedly caused great impact on pecans produced in
State of Georgia. Preliminary estimate shows the output loss is 30-45 million
pounds. The hurricane swept the largest production zone in Georgia. However,
the global pecan supply this year will create a new record, while the Hurricane
mainly affected Georgia, but did not generate destructive impact on output of
entire America.
Since current market price is at a very low level, many growers suffering
losses may decide not to collect the nuts fell because their insurance
compensation will cover the cost to clean wastes and pick up nuts. It means the
output loss will be substantial.
Chinese buyers do not actively buy pecans actively. The purchase volume of
China in 2017-18 production seasons is 81 million pounds. It means US suppliers
will loss such demand. Although current price has become stable, according to
current prediction, large amount of pecans may meet expected demands.
In early October, APC announced statistical data of pecan output in 2017. According
to APC data, the yield in 2017 is 312.94 million pounds, about 19 million
pounds higher compared to data of USDA in July.
Recently, USDA released the primary estimate of 2018 pecan output is 278.9
million pounds. This data only contains the output of the eight largest
producing states. Historical data and 2016 and 2017 APC crop data released
latest shows the expected output in final 2018-19 producing season is about 207
million pounds. However, this data is calculated prior to Hurricane Michael. The
output may be adjusted slightly due to impact of hurricane.
According to the output report, the closing inventory in September is increased 29 million pounds, about 20% in terms of overall supply.