Watch Carryforward Almost Gone As PB, Snacks Feed Families In Quarantine
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tress in agriculture has never been greater. Two major hurricanes, Irma and Michael, quality problems and now germination issues, low commodity prices, COVID-19 pandemic, riots and unrest in cities, talk of food shortages, a devastating court ruling on a popular chemical product...the list seems endless. The U.S. peanut market has remained quiet during the COVID-19 pandemic. There has been no panic in prices. The increase in prices for raw-shelled peanuts was caused mostly because of quality issues from the 2019 crop. Aflatoxin reared its ugly head and clean, top-quality raw-shelled peanuts became a premium. Shellers and production facilities set up COVID-19 precautions and kept delivering while protecting their employees. With consumers concerned about a food shortage, the peanut industry provided grocery stores and other food outlets with the peanut products they want and need. The American peanut industry takes the responsibility of producing quality food products very seriously. The nation’s leading health, food and agriculture agencies were also working with industry to ensure a safe and stable food supply. USDA Help Congress and the U.S. Department of Agriculture, through the Farm Service Agency, started accepting applications from agricultural producers who have suffered losses. The Coronavirus Aid, Relief and Economic Security Act allocated $16 billion to provide vital financial assistance to producers of agricultural commodities who suffered a 5% or greater price decline due to COVID-19. Peanuts did not have a 5% or greater loss. Other programs available included the Paycheck Protection Program and
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THE PEANUT GROWER • JULY 2020
J. Tyron Spearman Contributing Editor, The Peanut Grower
Leading Marketing Indicators (June 3, 2020) 2020 Acreage Est. (+7%) ...................................................1,468,000,acres 2020 Production Est. (4,000 lbs/A) ..................................... 2,936,000 tons 2019 Acreage (+ 1%) .........................................................1,391,000 acres 2019 Production (3,949 lbs/A) ............................................ 2,748,043 tons 2019 Market Loan ............................................................... 2,341,062 tons 2019 Remaining in Loan ........................................................ 945,973 tons 2019-20 Domestic Usage (9 Mo.) ........................................... Up + 5.5 % 2019-20 Exports (8 Mo.) ........................................................... Up + 25.3% POSTED PRICE (per ton) Runners -$424.13; Spanish - $416.70; Valencia and Virginias - $430.94
the Wildlife Habitat Incentive Program, which was mainly for farmers with storm or drought losses. Acreage Estimate And Production U.S. peanut production is forecast at 5.9 billion pounds (2,935,000 tons), up from 5.5 billion pounds in the 2019-2020 marketing year. Planted acreage intentions were up 7% to 1.5 million acres with the largest increase in Georgia. Some estimate that acreage could be up 15% to 20%. Seed germination on later-shelled lots has been reported as problematic. The U.S. average yield is projected to increase by 1% to 4,000 pounds per acre. Based on the peanut supply and slightly increased use, the carryforward is now estimated at 11% less or 828,000 farmer stock tons. Contract Offers Farmers wanted more than the $400 to $425 per ton for runners and $450 per ton on Virginias with shelled market prices at 45 cents per pound. Prices for cot-
ton or corn were not exciting enough to be in competition for peanut acres. Most farmer stock contracts were signed when raw-shelled prices jumped to 80 cents per pound. Farmers are hoping for a price improvement on uncontracted 2019 loan peanuts and 2020 uncontracted stocks. Offers will likely be impacted by the acreage report issued by USDA on June 30. PLC Payment Per USDA, the average price received by farmers for farmer stock peanuts averaged 20.6 cents per pound or $412 per ton in March. Prices in February were slightly lower at 20.5 cents per pound or $410 per ton. Prices have been the lowest in history this year with a low of $384 per ton in November to a high of $418 per ton in January. The ninemonth average is about $404 per ton. Farmers who signed up for the Price Loss Coverage program will receive a payment in October, the difference between the average price, now at $404, and the reference price of $535 per ton or $131 PEANUTGROWER.COM
