Market Watch

Trade And Disaster Relief Dominate Market Talk Most Recently

Production for peanuts in 2019-20 is projected by USDA to be up 3 percent to 5.6 billion pounds based on modest increases in intended planting and yield. The NASS Prospective Plantings report showed most peanut acreage gains are expected for Texas and Florida, where cotton acreage is down 23 percent. The idea that cotton would bounce back to 80 cents ... Read More »

Lack Of Contracting Puts Producers In Unfamiliar Position

peanut harvest

As the 2019 peanut crop gets planted, markets remain quiet. Buyers are aware that carry forward numbers are high and so there is no urgency to book any additional peanuts. Buyers at home and abroad are open to offers of 2019 crop, but most shellers are off the market as farmers are unwilling to contract at the sheller’s offer of ... Read More »

Too Many Unknowns For Market Movement

J. Tyron spearman

It is not fake news to say that peanut markets are dead. As one broker explained, “As an industry, we must find a way to sell more peanuts.” Domestically, we’re not going to turn this ship around anytime soon. As for exports, we could eventually export the 2017 forfeitures to China and maybe some peanuts from the 2018 crop, particularly ... Read More »

Past Production And Yield Pressure Prices

key considerations for planting

The 2019 peanut market for farmers was already weak because of a large carry-over from the 2017 and 2018 crops. Production in 2018 was estimated at 5.46 billion pounds, (2,730,800 tons) down 23 percent from 2017. Planted area was estimated at 1.43 million acres, down 24 percent from 2017. Farmers were cutting back, trying to do the right thing to ... Read More »

Less Carry-Over Than 2018, But Still An Abundant Supply

peanut exports

The entire peanut industry is in a holding pattern. Neither buyers, nor shellers or even farmers can make an informed decision about what to do in 2019 crop year. Buyers for both domestic and export are only buying hand-to-mouth as sufficient supplies worldwide are available at reasonable prices. If shellers offered a 2019 farmer-stock contract, it would be near $350-$385 ... Read More »

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 »