Supply and Demand Four basic laws of supply and demand: If demand increases and supply remains unchanged, then it leads to higher equilibrium price and quantity. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and quantity. If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity. If supply decreases and demand remains unchanged, then it leads to higher price and lower quantity.
Forecast June-11July-11 August-11 Tri StateTPGA CPGA StateLittlepagePapeBrookshireBlain AL 7.08.07.0 AR 3.04.02.03.0 AZ 19.0 20.018.0 CA 3.54.0 3.5 FL 0.51.52.22.0 GA 80.090.084.090.0 KS 2.05.02.0 LA 8.59.07.58.0 MS 2.02.51.52.0 MO 1.5w/ks1.20.5 NM 57.055.063.060.0 NC 0.51.0 0.0 OK 15.019.016.025.0 SC 2.03.02.12.0 TX 45.040.0 35.0 U.S. 246.5261.0252.5258.0 Mexico135.0 142.0 Carryin80.0 70.0
Trends China wants to buy inexpensive inshell pecans Tend to buy varieties typically found in the east Stuart Desirable Moneymaker Tend to buy from the east where yields are lower U.S. Shellers left with high yielding western varieties Higher price to growers in the West (In-shell Basis) Better color and shelling yields
Summary Low Supply Short ON crop 2011 crop year Probably Average OFF crop 2012 crop year Should take two ON crops to replenish supplies to 2009 levels 2013 & 2015 Demand Health Benefits, China & Sheller Relationship
Any Questions? Brody Blain Vice-President 800-680-1788