USA: Export market benefits from an increase in European demand

The U.S. peanut market is facing a challenging year in 2024, with a forecasted 25% drop in farm income due to lower commodity prices and higher inflation. Despite these challenges, peanut acreage is expected to increase by 5.4%, and the market remained strong in 2023 with a 7% increase in production and a slight increase in the average price of peanuts. Shellers are offering contracts for runner-type peanuts at competitive prices, with high-oleic varieties fetching the highest price. The Virginia-Carolina region is seeing firm prices for different peanut types, and there's a notable increase in U.S. peanut exports, reaching a record-high value with Europe emerging as the third-largest export market. However, the absence of a PLC payment under the current peanut program is reducing its value to farmers, prompting the U.S. Peanut Federation to advocate for an increase in the reference price within the Farm Bill. Domestic usage of raw-shelled peanuts has slightly declined, except for peanut butter, which shows a 1% increase.