Well peanut farmers selling peanuts at the buying points now are wondering what has happened to the peanut market.
They only approved about half of their crop at $500 a ton and all other peanuts are going into the loan at $355. Here is a good reason why. China, the biggest competition in the world, they have their peanut area increased 12% and peanut production is projected now to reach 19 million metric tons compared to last year’s 16.5. The high domestic production and the weak consumption in China continue to restrict peanut imports which they were a major importer for making peanut oil.
Another big record peanut crop, India. India has made 12 million metric tons and has a major oversupply. The U.S. farmers estimated planting 1.95 million acres up 8% from last year and the production now is forecast at about 7.41 billion pounds up 15% from last year.
And then another area is Argentina. The final 24 count there said they had 50% more peanuts this year than last year 1.45 million metric tons. So more peanuts around the world and that is causing the price to drop.
Audio Reporting by Tyron Spearman for Southeast AgNet.