USDA’s stocks and processing for peanuts has been announced with some new numbers lowering the number of peanuts that will go into the market this year because of a cut back in acres.
There’s 5.4 billion pounds expected. That’s 2,709,000. That’s down 25 percent with a lower harvested area and offset by higher yield.
The higher yield is about 200 pounds more than last year, up to 3,956 pounds per acre. That’s a 5 percent increase from last year. Despite the lower supplies, they said that peanut consumption for the crush and exports is forfeited to be higher this coming year.
Peanuts used in food, they said for this year, are forecast to grow now at 2 percent. Earlier, it was at 5 percent. The crush is expected to remain elevated because of peanuts going into peanut oil.
Export market, they said, is projected to be 1.4 billion pounds. That’s up slightly from last year. Prices and higher stocks are expected to keep the U.S. competitive this year in the international markets.
Average price this year, they said, for farmers will be about 24 cents per pound. That will have an impact on the PSA payment this coming year.
Audio Reporting by Tyron Spearman for Southeast AgNet.