Weather uncertainty coupled with the failure of the peanut industry to offer competitive prices for peanuts compared to cotton and corn are setting the peanut market up for a pretty serious roller coaster ride.
There is really no reason at this point for farmers to take a $650 offer for their uncommitted 2010 crop peanuts because they are going to only go up in value from this point.
2011 plantings are being hampered by dry weather and will only cause intentions to go down and not up. While cotton seed can be dusted in and wait for rain peanuts must have moisture or they should not be planted.
Predictions for a couple days of rain for the weekend are now down to a day of showers which may not provide much relief to the drought.
The annual rainfall deficit passed six inches and the drought has now been upgraded to Severe to even Extreme in the entire Georgia Peanut Belt.
I have said before and will say again...somebody is going to do without peanuts before the 2012 harvest and they might do with out even before then.
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