USDA’s Ag Statistics Service has made their first estimate on the peanut crop for this coming year.
Production is projected to decline this year with about 6 billion pounds because of lower acreage and average yield. U.S. peanut farmers only intend to sow about 1.7 million acres this coming year as prices have been suppressed with limited demand growth resulting in ample carry-in stocks for next year. They said peanut supplies in this coming year are forecast at a record level because of a higher carry-forward from the old crop offsetting the lower production that might be produced.
With higher supplies, peanut domestic food use is still forecast to grow 2% this coming year compared to last year as food use up 2%. In addition, the low prices are forecast to boost peanut exports to 1.4 billion pounds except 1.25 billion pounds from last year are a 12% increase on exports. Peanut ending stocks are then forecast to remain elevated at about 2.6 billion pounds as a result of those projections.
So, food use up a little bit, exports up a little bit, (1:18) average price they say this year will be about 24 cents per pound.
Audio Reporting by Tyron Spearman for Southeast AgNet.