W47 Peanut Update: US Trade Delegation Explores Japanese Markets, Texas Overcomes Drought Challenges and Myanmar Grapples with Border Trade Lane Blockades

American Peanut Council Explores Japanese Market Opportunities

The American Peanut Council led a trade delegation to Japan, benefiting from removing a 10% duty on United States (US) peanut imports under the Japan-US Trade Agreement. Japan is the fifth-largest market for US peanut exports, witnessing a record-high of 20.17 thousand metric tons (mt) valued at USD 35.6 million in 2022. During the mission, delegates engaged with key stakeholders, including Japanese agriculture and trade officials, and visited a peanut farm in Chiba Prefecture. The visit aimed to strengthen relationships, capitalize on Japan's growing demand for peanuts, and enhance trade development in this promising market.

Texas Peanut Harvest Overcomes Drought Challenges in 2023

Furthermore, despite consecutive years of drought affecting peanut growers in Texas, US, harvested acres have increased compared to 2022. The United States Department of Agriculture's (USDA) National Agricultural Statistics Service Information (NASS) reported an estimated 677 million pounds of peanut production in Texas for 2023, a 107% increase from 2022. However, challenges persisted as 13 thousand to 14 thousand peanut acres were lost to dry and hot conditions. The lack of rain and soil moisture made growers heavily reliant on irrigation, influencing individual outcomes based on farm irrigation capacity. Despite delays caused by drought and weather, peanut prices reached a decade-high average of USD 545 per ton, driven by shifting consumer demand in the US.

Myanmar's Peanut Market Struggles Amid Border Trade Lane Blockade

The blockade of border trade lanes adversely affected Myanmar's domestic producers, particularly in the agriculture-based economy. With the closure of current border trade routes, the market and prices of agricultural products, including peanuts, are declining. The halt in exports to China has resulted in a cold trade in the peanut market. As of W47, peanut prices range from USD 2.52 to 2.86 per 1.6 kilograms (MMK 5,300 to 6,000/1.6 kg), but farmers are selling at lower rates, such as USD 2.38/1.6 kg (MMK 5,000/1.6 kg) for red and white peanuts and USD 2.14/1.6 kg (MMK 4,500/1.6 kg) for oil-milled oil. The challenging situation impacts farmers who cite planting costs for peanuts this year, ranging from USD 285.71 to 357.13 per acre (MMK 600,000 to 750,000/acre).