US: Thanks To Other Crop Prices, The Market May Firm Up

As the pandemic continues, the peanut market has been relatively quiet for growers and shellers. Buyers have good coverage for 2021, and shellers are not being aggressive to sell with higher prices looming. But changes in the peanut market are expected. Thanks to rising cotton and corn prices, the peanut market has a firm undertone. Corn is over $5 a bushel, and cotton is 76.5 cents per pound. These prices offer competitive alternatives to planting peanuts, and farmers will want more money to contract peanuts for the 2021 crop. Current crop prices range from the low to mid-50 cents per pound on a raw basis. Both hard and soft commodities worldwide seem to be in a rising scenario, and an expected increase in demand of all commodities after the pandemic leads to a growing conclusion of higher prices and increased inflation for the foreseeable future. Farmers are beginning to think about 2021 crop contracting, and an estimated price of at least $475 per farmer-stock ton is needed to ...