Market Watch

A Good Quality Crop Is Needed In 2020

loading peanuts

COVID-19 is bringing more stress and worry to the agriculture picture. If there is a positive in this, it is that demand for peanuts and peanut butter will increase as more people are eating at home. The easy-to-use, nutritious, go-to food makes an ideal meal or snack for families staying at home instead of sending the kids to school and ... Read More »

Domestic Usage Takes Big Jump In First Quarter

peanut butter

Never before has the U.S. peanut market been in such disarray with so many unusual circumstances as it is in 2020. The peanut market continues to rise with very thin trading volume. Prices for peanuts testing negative for aflatoxin are about 68 cents per pound for whole peanuts. Blanched material is priced in the mid-70s to low 80 cents per ... Read More »

Carryover Reduction Is A Positive For Producers

The U.S. peanut market is said to be difficult with producers awaiting marketing signals on how many acres of peanuts to plant. Shellers are struggling to meet deliveries of current contracts and still show little interest to sell more until current contracts are filled. If a buyer does show interest and a price is offered, shellers are still choosing to ... Read More »

Offers Reflect The Full Market Pipeline

peanut grading

The peanut market has firmed up slightly as shelling of the 2019 crop gets underway. The price for shelled runner peanuts has increased from 46 cents per pound in the early season to 56 cents per pound this month. Some buyers waited and are now feeling the pinch of having to pay more for peanuts. Quality seems to be the ... Read More »

Uncertain Crop Quality Makes Supply/Demand Calculations Difficult

peanuts drying

The wait and see feeling continues for the peanut industry. Peanut shellers are processing the 2019 crop. Brokers report that U.S. exports depend on the quality of Southeast-produced peanuts and how well the shellers will be able to handle it. Prices for raw-shelled peanuts have only one way to go and that is up. Tight specifications for the market will ... Read More »

Crop conditions expected to affect final yield

peanuts, center pivot

The U.S. market is in a “wait and see” mode. The Southeast, where 70% of peanuts are grown, is experiencing hot and dry conditions, one of the longest such periods in history. Early planted peanuts were considered good, especially those under irrigation. However, late-planted and dryland peanuts are showing damage and increased aflatoxin. It is too early to tell the ... Read More »

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 »