Actual prices could be higher or lower. But So Is Demand. As farmers prepare to plant the 2001 crop, the market situation for peanuts has changed somewhat from last year.
Supplies are down due to a shortfall in production.
Although US farmers planted 1.543 million acres in 2000, they harvested 1.315 million acres abandoning 3 times the normal abandonment acreage. Carryover stocks from the '99 crop totaled 617 thousand tons and imports including minimum access are estimated at 179 million pounds. Despite the drop in production mainly due harvest problems in the Southwest, quota needs were met through the buyback provision allowing 112,000 tons of additionals to be converted to domestic use. Contract additionals totaled 229,000 tons and loan additionals minus buybacks totaled 114.000 tons. The Southeast is the only source of export additionals with at least 60,000 tons available in the GFA peanut association.