W1 Peanut Update: US Faces Yield Decline Due to Adverse Weather Conditions, and China Sees Unchanged Prices After New Year’s Holiday

US Peanut Production Faces Challenges Due to Adverse Weather Despite Increased Plantings

In 2023, peanut cultivation in the United States (US) increased by 12.9% year-on-year (YoY) to 1.6 million acres. However, adverse weather conditions in the summer negatively impacted peanut production, resulting in a reduction of approximately 150 pounds (lbs) per acre in 2023 compared to 2022. The latest United States Department of Agriculture (USDA) yield estimate is 3,740 lbs per acre, reflecting a 6.5% YoY decline. The USDA production estimate of 2,994 thousand tons did not include 50 thousand tons of peanuts produced in Missouri, potentially bringing the total US harvest slightly over 3 million tons. Despite the decrease in average yield, the substantial increase in planted acres is anticipated to result in a higher yield for 2023 compared to 2.8 million tons in 2022.

Peanut Prices Remain Stable in China After New Year Holiday

As of January 4, 2023, peanut prices in China stood at USD 1,346 (RMB 9,560) per metric ton (mt), showing no change compared to the previous week. After the New Year holiday, trade activities are limited, with farmers and traders unwilling to sell at lower prices. In addition, traders are adopting a more cautious approach to their purchases. The peanut prices are anticipated to remain stable or drop slightly in the upcoming week.