Market Watch

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 »

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 »