Peanut Market News – January 5, 2017

2017 Contracts

SE – Mostly $475 per ton with no limit, plus $25 per ton for seed production, $50 per ton premium for High Oleic production.  Some contract sign-up is l/2 last year’s production at $475 per ton plus $25 per ton for seed production.  Some $475 per ton reduced to $450 per ton for freight differential, hauling from long distance production areas to shelling plant.

2016 FLEX:  $ 400 ton base price = 0.52.  For each 0.01 increase in price above 0.52, add $ 13.50 ton up to a maximum of 0.61.

Present price is 0.56, which would equal 0.04 improvement, or a price of $ 454 ton.Maximum price achievable at 0.61 is $ 521.50.

2016 MIN -MAX:  $400 base.  Farmers sell peanuts based on sheller web price before end of March, up to MAX $500 per ton.($450)

PEANUT & TREE NUT CONVENTION PLANS

The Peanut and Tree Nut Processors Association will host the 2017 Convention January 13-16, 2017 in Scottsdale, AZ at the Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch.  The General Session on Sunday will feature Scott Clemons of Brown Brothers Harriman on ‘The Economy: 2017 Outlook’, Martin Hahn and Hogan Lovells with a ‘Washington Update:  Labeling and Key Issues’, and Bernice Neumann and Paige Zidek of Exponent PR talking ‘Social Media and The Nut Industry.’ 

The Monday session features Joseph Clayton of the International Food Information Council discussing ‘Consumer Trends and Insights’ and Matt Stasiewicz of the University of Illinois talking ‘Understanding Whole Genome Sequencing.’  The Commodity Workshop will have speakers discussing different nuts.  Karl Zimmer of Premium Peanut will represent peanuts.  To join or info: Jeannie@PTNPA.ORG or call 301-365-2521.

MARKET WATCH- EXPORTS

U.S. peanut industry received notice of four more Rapid Alerts (failures of aflatoxin retests upon arrival in Europe) this week which brings us to 29 so far in 2016.  The European Commission’s Directorate General for Health and Safety has reportedly recommended that the U.S. be removed from the program known as pre-export origin testing certification whereby 1% or less of peanut shipments are stopped for retesting.  Full details will be known in January.

Export statistics were released for the period January-October, 2017 and showed continued strong exports at 562,111 MT ($706 million) so far, a 59% increase over the same period last year.  The big part of this is 170,000 tons to China and 62,000 tons to Vietnam, likely transshipped to China.  However, Canada, Mexico and Japan all showed excellent growth as well.

Officials in Argentina report that strong rain storms hit Cordoba during the Christmas weekend.  One report said that strong storm struck the province of Cordoba with rains that in some areas were over 200 mm.(8 inches) They were accompanied by large hailstone and strong winds. There are flooded rural roads and locations at the south of the province with evacuees. Some places were directly isolated as a result of the water accumulated in the public highway.  Peanut plants are increasing vegetation and starting to bloom, too early to determine damage. 

REDDING TALKS WASHINGTON & IMPACT ON PEANUTS/AGRICULTURE

Bob Redding of the Redding Firm said that although there will be some changes in the House and Senate ratio’s for the 115th Congress, most of the Agricultural Leadership will remain in place for the 2018 Farm Bill.  The Capitol Hill peanut leadership is well-positioned with regard to senior policy slots on both the authorization and appropriations committees. 

He reported that Congress has passed the Continuing Resolution to fund the federal government through April 28, 2017.   The new Administration’s nominations will likely consume the Senate Agriculture Committee for the first quarter of 2017.  He said, “We anticipate farm bill hearings in 2017.  The Southern Peanut Farmers Federation is working with the National Peanut Buying Points Association and the American Peanut Shellers Association on options for the next farm bill.”  Who replaces Senator Jeff Sessions of Alabama will be the most important near term appointment and election in 2017 for peanut growers

MORE PEANUT CONTRACTS BEING OFFERED

Buying points are reporting contracts for 2017 peanut crop are being offered to farmers.  Many farmers have to “make arrangements” before the end of the year to secure financing or often to get “Christmas money”.  In the Southeast region, shellers are offering mostly $475 per ton with no limit, plus $25 per ton for seed production and some are offering $50 per ton bonus for High Oleic production.  Some shellers are limiting the contract sign-up to l/2 last year’s production at $475 per ton plus $25 per ton for seed production.  There are some shellers reducing the $475 per ton to $450 per ton due to freight differential, hauling from long distance production areas to the shelling plant.

Some have asked about PLC payment that is based on the average price of farmer stock peanuts.  The 2016 peanut crop was sold at very low prices.  The PLC payment averages prices from August 2016 til July 2017 with a payment in October. These higher contract prices will be more reflected in the October 2018 payment. That’s when Congress examines the program and peanut program costs should be lower with the higher market price and a lower PLC payment in 2018.

SUCCESS! PEANUT EMOJI RELEASED

After a campaign to help propel and promote peanuts through the digital age, #WheresMyPeanutEmoji, there’s good news for peanut lovers! If you’re an iPhone user, you can officially download the new iOS 10.2 update and start using the peanut emoji in your text conversations today. Released Tuesday as part of the new iOS update, Apple has unveiled 104 new text emojis. The latest collection includes new food icons such as the long-awaited peanut, salad, avocado, and bacon strips. The new update also includes new occupations for both men and women including a farmer emoji. Whole Earth Foods and the Virginia Carolinas Peanut Promotions are already tweeting out the good news of the arrival of the peanut emoji. Go nuts! 

 

via Peanut Farm Market News, a peanut hotline service of The Spearman Agency, Tyron Spearman, editor