Peanut Market News – December 12, 2016

AMERICAN PEANUT COUNCIL ELECTS 2016-17 OFFICERS

At the Winter Conference of the American Peanut Council meeting in Washington this week, new 2016-17 officers were elected.  After caucuses and elections, the new

APC Executive Committee is:

  • Nick Melhuish,  Algood Food Company, Chairman
  • Charles Birdsong, Birdsong Peanuts, Chairman-Elect
  • Sid Levy, SGL International, LLC, Secretary-Treasurer
  • Otis Johnson, Texas Peanut Producers Board, Past Chairman

NATIONAL PEANUT BOARD WANTS ACCURATE INFO

A wide-ranging report, Finding a Path to Safety in Food Allergy: Assessment of the Global Burden, Causes, Prevention, Management, and Public Policy; issued by the National Academies of Sciences, Engineering, and Medicine (NASEM) Nov. 30, calls for more accurate prevalence statistics, education and training, access to treatment and increased understanding of and approaches to food allergies. The National Peanut Board was one of the study’s 11 co-sponsors. The report identifies broad areas and actions needed to improve the food allergy safety landscape in the U.S., while pinpointing needs for more research, better diagnostic tools and more effective educational approaches to food allergies. Recommendations are given to policy makers, industry leaders, health professionals and others to bring about a safe environment for those with food allergy. The report was authored by an ad hoc committee of experts.

“This report is good news for the peanut and food allergy community and the National Peanut Board is proud to be one of its sponsors,” said Bob Parker, president and CEO of The National Peanut Board.

PEANUT STOCKS AND PROCESSING REPORT

USDA’s Peanut Stocks and Processing Report was released November 29, 2016 for the month of October 2016, the 3nd month of the marketing year.

Peanut stocks in commercial storage as of October 31, 2016 totaled 4.14 billion pounds equivalent farmer stock, compared to 4.50 billion pounds last year, DOWN 8.0%.  This total includes 3.57 billion pounds of actual farmer stock, UP 6.9% from last year. Shelled peanuts on hand, farmer stock equivalent, totaled 547 million pounds, DOWN 3.0%.  Roasted stocks were 19.3 million pounds, DOWN 60.6% from same month last year.

Total shelled peanut stocks showed 411 million pounds, DOWN 3.1% with edible grades reaching 383 million pounds, 1.5% less than last year.  Oil stocks totaled 27.9 million pounds, DOWN 21.1% from last year.

Edible stocks of shelled peanuts by type, Virginia & Valencia stocks are at 70.8 million pounds, 27.7% LESS than last year. Runners were 299 million pounds, UP 2.6% and Spanish totaled 13.2 million lbs, DOWN 35.6% from last year. 

In September, shellers milled 268 million pounds, DOWN 21.5% from October last year. Commercial processors used 191 million pounds of shelled edible peanuts, 3.2% MORE than last October.

 Government purchases for Nutrition Programs in October totaled 3.17 million lbs of peanut butter, down 26.2%. Roasted peanuts were 51.840 million pounds, double the purchase of last year.  For the first three month period, government purchases are DOWN 14.1% compared to last year. 

Month(1000 #)

Peanut candy

Snack peanuts

Peanut butter

Total edibles

In-shell P’nuts

Aug-Oct  2016

104,659

124,229

343,395

585,600

31,079

Aug-Oct 2015

96,273

130,185

321,996

564,815

36,598

 

UP  + 8.7%

DOWN – 4.6%

UP + 6.6%

UP + 3.5 %

DOWN – 15.1%

Oct 15 vs Oct 16

UP  + 0.9%

DOWN – 1.6%

UP + 8.1%

UP + 3.9 %

DOWN  – 14.9%

October was a good month for peanut usage with increases in peanut candy and peanut butter.  Overall, the increase for the 3 month period is now 3.5%.  USDA has predicted a 1.9% increase in domestic consumption.  In-shells is down about 15.1% indicating supplies from last year’s crop may be tight.  With prices increasing for peanuts due to the big buy by China and the crop quality and size, it may be difficult to maintain a 3.5% increase in peanut usage this year.  April planting time is just around the corner.

ARGENTINA CROP UPDATE

Officials report that current crop is practically sold of edible good material to Europe.  Only material left is some bird-food material, with very good demand.  Some parcels of inferior quality may be sold to other markets, but overall volume is sold.  New Argentina crop has been planted, similar to last year, about 350,000 hectares.  Officials said the intention was to plant more; however low quality seed and excess rains in some fields flooded near the end of the planting season.  Officials report excellent demand for new crop (2017).  It is difficult to price not knowing the development of the crop.  Argentina officials believe that China will again be a buyer after their new crop is harvested, about April.  Brazil is also offering some new crop around March/April, but volume is small. 

 

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