Talking about the peanut market, as farmers try to decide what to plant this year, cotton is improving and that could influence the amount of acreage on peanuts. They say it’s going to be down 14% on the first estimate.
The market is extremely quiet in all parts of the world, especially in the southeast of the U.S. and parts of Virginia and Carolina, as they are experiencing very dry weather. This drought is really holding things up. Planting season is about a month away, about April 15th to May 15th.
USDA estimates the 26th crop will be about 14% down, a surprising number most of the trade said, but it will depend on how cotton rallies in the next few weeks. Planting season is up in China. Around the plantings could be up five to ten percent.
Brazil is a new child on the block. Brazil harvesting is underway, but has been delayed due to rainy weather, and they are going to be a competitor for this coming year. Argentina crop is also continuing to develop, and well after the early drought they had, heavy rains have caused the crop to slow down, and they’re not material ready, but they want to start digging as soon as possible.
The basic U.S. peanut is trading at low levels, but that’s the minimum price for the year, and no contracts are out at this time.
Audio Reporting by Tyron Spearman for Southeast AgNet.