When Time Runs Out

The real question right now is when does time run out to get peanuts planted in 2011.

I was riding with a farmer today who told me he just booked another 400 bales of cotton and 4000 bushels of corn which for him represents about 250 acres of corn. He still has no enthusiasm for peanuts and was offered a $600 contract. He says the price has to be at least $650 to compete with cotton and corn.

Another farmer made the comment the increase in cotton acres is a significant shift from peanuts.

Shellers tell me they can't make competitive offers because the manufacturers don't believe the 2010 crop is as bad as is being reported and much of the trading is still on 2009 crop.

One County FSA office reported shellers wanting to redeem all the peanuts out of the loan immediately. This is odd when you consider the government fronts storage and handling monies to be paid at redemption so the incentive to do this is not normal at this time.

Finally, a farmer from the Southwest part of the state told me at one time he believed $600 would get all the peanuts we need planted. Now he questions if there is any number which could cause that to happen but it certainly is not at $600.

Hold on because this is going to be a rough ride and you might need an oxygen mask to get past the highs in the market at year's end.