Peanut Market News- May 30, 2017

BUDGET ELIMINATES EXPORT PROMOTIONS 

The Administration released a $4.094 trillion FY 18 proposed federal budget that calls for eliminating funding for both MAP and FMD (pages 104 and 105).  This is disappointing to the American peanut industry and the tremendous progress made with this export expansion program.  It also runs counter to recent studies led by Dr. Gary Williams (Texas A&M University) (“Economic Impact of USDA Export Market Development Programs, ) that illustrated the tremendous contributions both programs make to the farm economy and the general economy–generating a remarkable return on investment of approximately $28 in export gains for every additional $1 spent on foreign market development.  If you want it back in the budget, the industry will have to contact the House and Senate members.

 

TEXAS PEANUT CROP UPDATE

STATE

ITEM

May 28,   2017      

              PREV. WEEK

May 28, 2016  

                      5-YEAR AVG.

 

TEXAS

Peanuts Planted 

72%

60%

74%

71%

Soil Moisture (12)

18%  Very Short

57% Short

26% Adequate

0% Surplus

 

Cotton and peanuts slow to emerge due to cooler temperatures.  Winds and hail affected corn and some peanut fields affected by hail damage. 

 

FOREIGN AG SERVICE REPORTS WORLD PRODUCTION 

Global peanut production in 2017/18 is forecast to rise almost 1.0 million tons to 43.3 million, as area harvested in China, India, and the United States is projected to grow.

While this would be the third largest peanut production on record, growing demand is expected to lead to a drawdown in global stocks.

ARGENTINA EXPERIENCING MORE RAIN 

(Source: GEORGALOS PEANUT WORLD) – As the days go by under the ADVERSE WEATHER CONDITIONS, the cultivar areas lost increases. This is either for the presence of water in the lots, impossibility of accessing into some fields, lots or sectors of them, and also because many peanuts have lost because they

have exceeded 180-200 days since the planting and the plants did not longer withstand the passage of days, and they ended up dying.

Some official sources in the last days reported that the losses would already exceed 40,000 hectares.

Officials said, ‘To this we should add that very little has been harvested to date and the weather conditions remain extremely unstable.  We continue observing a very variable condition in terms of production potentials for Argentina, because the reality changes every week and the truth is that everything that occurs is negative for the peanut.’ 

 

MEXICO EXPORTS OF U.S. PEANUTS

 

Aug. 15- Mar. 16

Aug. 16- Mar. 17

Mar. 16

Mar.17

Raw Shelled Peanuts (MT) UP +18.5%

49,996

40,245

7,672

5,704

Peanut Butter (MT) DOWN – 7.8%

49,996

40,245

7,672

5,704

 

 

2017 CONTRACTS

SE – Not active at this time, just one on one.  $450-475 per ton, $50 per ton premium for High Oleic production.  Some $450 per ton reduced to $425 per ton for freight differential,   Some shellers said they are off the market.

VC – $500 per ton for regular Virginias (Bailey and Sullivans, etc).   $475 per ton being offered for HO Runners and $450 per ton for non HO runners, GA 06G with no restrictions.  Seed production premium is usually $25 per ton. Some limits.

SW – contract prices presently; $ 500 HO runner, $ 525 HO commercial Spanish, $ 550 HO Virginia.

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 0.60, which equals $0.06 increase, or a price of $508 per ton. Maximum price achievable at 0.61 is $ 521.50. 

Some shellers still offering $500 per ton for any 2016 peanuts in loan, but uncontracted.  Some isolated areas even higher.

 

 

PEANUT NEWS BRIEFS

Mars Chocolate has notified the peanut industry they wanted to use 100% high oleic peanuts in their products, however due to supply issues, the switch to 100% is just 90%.  The 100% pledge of H-O peanuts currently is on peanut M&M’s and Munch Bars.  

LOSS OF PEANUT LEADER 

We are saddened to report the death of Thomas A. “Chip” Lee, 71, of Stephenville, Texas.
Funeral services were Sunday, May 7 at First Baptist Church in Stephenville. Thomas worked in the Texas A&M System as a plant pathologist for over 30 years advising lots of farmers on peanuts. Expressions of sympathy can be made to Foster’s Home for Children or Erath County 4-H Shooting Sports. Online condolences may be made at www.stephenvillefh.com.

 

PEANUT CALENDAR OF EVENTS

June 25-26-27, 2017 – Annual USA Peanut Congress, The Ritz Carlton, Amelia Island, FL  Joint Convention of the American Peanut Council and the American Peanut Shellers Association. For info, call 229-888-2508 or visit www.peanutsusa.com.  Reservations can be made by calling (866-763-2960) and referencing the USA Peanut Congress Group.    The room block deadline for reservations is May 22, 2017.

  July 11-13, 2017 –American Peanut Research and Educational Society Annual Meeting – Albuquerque, New Mexico.     Over 130 scientific papers and posters to be presented by America’s top peanut researchers.  Hotel Albuquerque Old Town – 505-843-6300 or www.hotelabq.com.  For more details, visit www.apresinc.com.                      

              July 20-22, 2017 Sandestin Golf & Beach Resort in Miramar Beach, Florida.  The theme will be “NAVIGATING THE MARKETPLACE”.  For information, visit www.southernpeanutfarmers.org.  For room reservations at the Sandestin Golf and Beach Resort, call 800-622-1038 and request the Peanut Grower’s Conference rate.  The Conference is an educational program of the peanut grower associations in Alabama, Florida and Mississippi and the Georgia Peanut Commission. 

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