Market Watch

All Eyes Will Be On 2019 Planting Intentions

peanut containers on dock

A peanut broker recently told farmers that the price of peanut kernels was indicating to shellers that we will need fewer peanuts in 2019 than was handled in 2018. This is because of weak domestic demand and uncertainty with respect to exports. That could change, but thus far, the market is urging a cutback. That about sums up the market ... Read More »

Wide Swath Of Industry Infrastructure Damaged

Hurricane Michael Damage to Georgia

The peanut industry has been jolted by two hurricanes this season. Florence hit North and South Carolina as harvest was about to start with flooding that caused rivers to overflow and covering crops waiting to be harvested. With about 40 percent of the Southeast peanut crop dug and harvested, Hurricane Michael plowed into the Florida Panhandle with 155 mile per ... Read More »

Growing Carryover Tonnage Suppresses The Market

The peanut market is about as stirred up as a large jar of mixed nuts. Nationally, Congress is wavering on passing the Farm Bill. Trump continues to talk of unfair trade agreements and farmers are expecting retaliatory tariffs on farm products. Planting season was first facing a drought. Then, it rained for three consecutive weeks delaying the planting of about ... Read More »

Did Planting Conditions Drive Acreage Toward Further Reduction?

loading stored peanuts

When we talk about peanut marketing, it’s supply versus demand that eventually rules. The government provides some stability and market protection for the grower; however, prices are influenced by the available peanut supply either in the loan or in the hands of the shellers. Shellers and buying points also have some protection with the market loan program, which furnishes a ... Read More »

Peanuts May Be In Excess, But Consumption Is Still Positive

planting seed

For a peanut farmer, it’s hard to get excited about 2018. Contract prices are down $100 per ton, or most of the possible profit, the generic base that allowed a base payment on peanut base and converted cotton base is gone, prices for about all inputs are up including seed and fertilizer, farm labor is almost impossible to find and ... Read More »

Still A Couple Of Years From Supply And Demand Balance

mw loading peanuts

The 2018 peanut market for farmers was already weak because of a large carryover from 2017. The cotton amendment in the recent U.S. budget resolution has jolted the peanut market and changed the dynamics for 2018. Generic base, which after the last Farm Bill could have been planted in peanuts, is gone. Read More »

Many Uncertainties Remain As Planting Approaches

USDA’s National Agricultural Statistics Service has lowered the peanut crop estimate for 2017. The early prediction of 3,819,500 tons may have been possible until the hurricane and late drought caused the peanut crop to shut down. Scientists are still scratching their heads a bit at what caused the fairly significant yield reduction. The final crop estimate was still a record ... Read More »

Will a reduced crop estimate make a difference in contract offers?

exports

Making plans for the 2018 peanut marketing year will be difficult. All markets are aware that we have a few too many peanuts. The U.S. peanut crop for 2017/18 was revised down 2 percent in the November Crop Production report to 7.64 billion pounds (3,819,500 tons) based on slightly lower yields. Georgia, Alabama and Florida account for most of this ... Read More »

Crop Expected to Top Previous Record By 15 Percent

Wow. What a peanut crop! It is difficult to be critical of over production knowing that the world needs your nutritious product to help solve hunger. One in every nine people goes to bed hungry each night. One cannot criticize Mother Nature for blessing the peanut nation with the ideal growing season, which produced a top quality crop. Records were ... Read More »