Peanut Market News: October 4, 2017

 SUSTAINABILITY NEWS TO USE

When it comes to nutrition, it’s hard to beat a peanut.  Peanuts have 7 grams of plant-based protein per serving – that’s more than any other nut. And one serving of dry-roasted peanuts contains 12 grams of unsaturated fat – the “good” fats research shows we all need – and no trans fats. For more reasons peanuts are good for our planet, our health and communities, visit sustainablepeanut.com. 

 

NATIONAL POSTED PRICE FOR PEANUTS 

Week- Sept. 26, 2017

Date – Sep.27, 2017

Date – Sep , 2016-17(tons)

Date – Sep 9, 2017

 

$424.43 per ton/Runners

Shelled Runners/SE

 

2015 Crop

2016 Crop

Runners – $.216 – $432 t

 

$409.00 per ton/Spanish

2016/17 Crop 

Date

9-28-16

9-27-17

Virginias – $.239 – $78 t

 

$429.97 per ton/Valencia

$.50 Jumbos, $.49 Med.

Loans

2,233,195

2,269,962

Average – $..221 – $442 t

 

$429.97 per ton/Virginia

$.48 Splits – Markets quiet

Redeemed

2,151,369

2,241,691

Runners – 24,261,000 #

 

Same as last week

9-28-16 Med- $.52, Jum-.53

In Loan

81.826

28,271

Virginias – 7,084,000 #

 

9-30-15 $. 51 Med & Jum

Estimate

3,006,805 t

2,842,305 t

Total – 31,345,000 #

 

 I = Inspected (6-21-2017)  2016 Crop

Inspected

3,021,711 t

2,779,409 t

Price – UP 1.7 ct/lb

 

  PLC Payment Rate for Peanuts – Reference Price = $0.2675, National Loan Rate = $0.1775, Marketing Year Average = $.1975 or $394 per ton.  PLC  Payment – Ref price of $535 per ton minus Marketing Year Average – $394 per ton or $141 per base ton on 85% of farm base reduced by sequestration (yet to be determined).  Payment in October, 2017 for crop year 2016-17(Aug-Jul). 

 

MARKET AT THE FARM 

(BROKER REPORT) Shellers aren’t anxious sellers and buyers at this point.  They are content to sit back and wait and see if this crop is indeed as big as the USDA purports it to be. It’s almost a Battle of Bunker Hill mentality where no one wants to fire “until you see the whites of their eyes.”

            It’s still hard to make an argument as to why either side would want to participate in this market today. Shellers should have an opportunity to purchase un-contracted tons cheaper at a later date, at which point Buyers will most likely participate. When that could be is an unknown.  Most Buyers have good coverage for 2018 so there is no urgency on the buy side regardless of how large this crop ends up being. There will no doubt be questions of forfeitures of 2018 crop and could that bring a return of Chinese buying interest into this market but suffice to say it is way too early to know when and if that will happen making it an additional unknown. So now we sit and wait and this market continues to largely just fill in holes where needed. 

 

PRICE LOSS COVERAGE TO HELP PEANUT FARMERS 

The prices for peanuts paid to farmers were very low last year. Over 99.6% of the peanut farmers signed up for the PLC program or Price Loss Coverage.  USDA says that from August 31, 2016 through August 30, 2017, the average price of peanuts in the U.S. as paid to farmers was $.1970 per lb.or $394 per ton.             

In the peanut law, the reference price is $535 per ton or ($.2675 per lb).  When the reference price is higher than the average price paid to farmers, the difference will be paid based on the tons of base allocated to that peanut farm.  The farmers would take the $141 per ton times 85% of the base acres (includes generic base allocated to peanuts) on that farm serial number times the payment yield for that farm serial number.  The total payment will be reduced by any sequestration cut.  (Will be in the FY2018 appropriations numbers)

A payment of $141 per ton ($535-$394 per ton) will be made in October, 2017 covering last year’s crop on 85% of the farm’s base. The PLC payment made in October 2016 for crop year 2015/16 was $149 per ton or $0.0745/lb

 

EXPORTS OF U.S. PEANUTS 

From Foreign Agricultural Service for August 2016-Jul, 2017 (12 months) (MT=Metric Ton)

 U.S. peanut exports will end the marketing year 23.7% less marketed than last year.  The big difference was the decision by China and Vietnam.  By category, raw shelled peanuts were steady, only down – 7.6%.  Peanut butter held strong, only down -11.3%.  The big decline was on in-shell peanuts, down -56.1% with no peanut buys by China, Vietnam and the Netherlands in July.  Peanut exports were up 64% last year at the end of July.  Many are waiting on new, higher quality new crop and an oversupply that will cause prices to be lower. 

Country

Aug 15-Ju116

Aug16-Jul17

Jul 16

Jul 17

Country

Aug15Jul16

Aug16-Jul17

Jul 16

Jul 17

Export Raw-Shelled Peanuts (MT) DOWN – 7.6 %

In-Shell Peanuts (MT) DOWN – 56.1 %

Canada

89,150

87,851

8,088

6,754

China

123,103

35,290

12,668

0

Mexico

77,172

61,983

5,395

6,252

Germany

15,442

14,005

997

1,578

Netherlands

20,841

44,545

1,269

2,243

Vietnam

18,832

5,438

699

0

China

30,619

22,669

1,903

73

Canada

4,958

5,247

403

482

Japan

11,115

13,736

437

797

Netherlands

4,360

3,698

1,009

0

TOTAL (U.S.)

299,238

276,507

22,570

17,866

U.S.

189,631

83,199

16,946

3,098

 

SKIPPY TO THE RESCUE 

Flood relief donation drives are ramping up throughout the county to help those affected by Hurricane Harvey in Texas. Austin-based Hormel Foods, however, had aid already in place.

In anticipation of hurricane season this year, Hormel Foods partnered with Convoy of Hope to help stock the humanitarian organization’s warehouse with “protein-rich products, such as Skippy peanut butter, Stagg chili, Hormel premium chicken breast and Spam products, that could be positioned and distributed immediately for disaster relief efforts,”

 

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