USA: Export market benefits from an increase in European demand

Published Apr 2, 2024

Tridge summary

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.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

J. Tyron spearmanJ. Tyron SpearmanContributing Editor Peanut producers roll into 2024 with lower commodity prices and higher inflation. The U.S. Department of Agriculture predicts that farm income will drop 25% from last year, news that took center stage at their recent Agricultural Outlook Forum. The government agency forecasted season-average corn and soybean prices of $4.40 and $11.20 per bushel, respectively. Cotton producers intend to plant 9.8 million cotton acres this spring, down 3.7% from 2023, according to the National Cotton Council. The NCC says fewer cotton acres for 2024 are a result of weak demand and higher input costs putting pressure on profitability. For peanuts, a survey of growers found that peanut acres will increase 5.4% to 1,731,000 acres. Georgia peanut producers are expected to plant 820,000 acres, up from ...
Source: Peanutgrower
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