Market Watch

Market Watch

Who Would Have Guessed This? The American peanut industry has just experienced one of the most amazing marketing years in history. Based on USDA estimates and with the industry facing an unusually large carry-forward, prices were reduced throughout the industry and cutbacks from the farm to the sheller were encouraged. Farmers were even encouraged not to plant peanuts for the ... Read More »

A Golden Opportunity

A more modern warehouse facility in Vienna, Ga., will mean more efficient unloading and enhanced quality. The increase in peanut tonnage over the last decade has heightened the need to modernize peanut processing facilities. Golden Peanut and Tree Nuts is investing in a significant upgrade and modernization of the company’s warehouse in Vienna, Ga., which will help to increase unloading ... Read More »

Do we have a bigger, better, safer industry than ever before?

The peanut market is often difficult to read, evaluate and especially to explain. The markets for farmer-stock peanuts have little or no impact on the shelled-market price at the sheller level. The export market for the farmer is lost in the blending of seasonal prices and world competition. Even the domestic market for the farmer is a three-way deal between ... Read More »

Export market picks up with shipments to China, Vietnam

The U.S. peanut market is getting mixed signals at home and abroad causing the producers to be concerned as to how to manage under the present peanut program. The Commodity Credit Corporation is successfully moving ahead with selling or exchanging 2014 forfeited farmer-stock peanuts to clear out warehouses. USDA is seeking bids on major purchases to go to nutrition programs ... Read More »

Shellers Contracting Smaller Percentage Of Crop Each Year

The U.S. peanut industry is adrift in a growing, uncharted fog. The Farm Bill has caused an expansion in acreage, which resulted in great surplus, and a lack of strategic planning has failed to keep all segments in a profitable posture. It will take time to turn this boat around and a heavy fog of market uncertainty and government intervention ... Read More »

Fallout from cost cutting will change the industry landscape

Unless the Southeast region of the peanut belt experiences a weather disaster, such as a drought or a major flood, peanut prices will likely stay flat during the 2016 growing season and beyond. Shellers are using every way possible to discourage wall-to-wall peanut acreage because they know that another bumper crop is likely to keep shelled peanut prices too low ... Read More »

Survival means bringing supply more in line with demand

The American peanut industry has been jolted by the low prices caused by increased acreage, increased yields and a generic base from cotton that resulted in even more peanut acreage. Because other commodities that could compete with peanut acreage offer low prices as well, producers have little choice in an effort to survive. The situation creating the need to go ... Read More »

Market usage must increase at a faster rate to keep pace with supply

Decisions, decisions, decisions. A producer’s goals include protecting the land and crop potential production with recommended crop rotation, surviving the lowest commodity prices in recent memory while reducing the cost of production so a profit shows at harvest, and then growing quality peanuts for the market and not for the government. Those are great goals; however, each farmer is different ... Read More »

With a year of experience, will you make any adjustments?

Producers have a better understanding of the 2014 Farm Bill after a full-year cycle under the Price Loss Coverage (PLC) program, which 99.7 percent of peanut producers chose. Farmers have always evaluated prices of commodities to determine the most profitable crop to plant. Other factors to evaluate include contract offers from shellers, cost of production and always with a watchful ... Read More »

Quality And Quantity Affected By Poor Harvest Conditions

Down on the family peanut farm, there is much unhappiness. Commodity prices are the lowest in two decades; peanut contracts are at or below the cost of production, and that’s if you can find one. Input costs were higher than last year, and the peanut program regulations have been almost impossible to fully understand. Just trying to survive, too many ... Read More »