Tuesday, June 14, 2011

August in June

Last week prices were reported as high as 93 cents for kernel sales for processing. Those peanuts were headed to Nicaragua which means less supply for domestic manufacturers.

This week highs continued in the 100's with records being shattered. Windy conditions continued to help the heat send evaporation through the roof.

Wells are having to be lowered and some fields abandoned. Lowering wells also increases energy cost and in some situations means a higher horsepower pumping unit.

Planting is at a standstill and tomorrow is the final deadline for planting if you are to have any coverage under the crop insurance program.

Normally we would expect to see the crop conditions and temperatures we are seeing now in August.

The peanut industry better brace up. Farmers need to hold on to uncommitted peanuts. Save some miraculous circumstance we will run out of peanuts before the 2012 harvest.

I have never seen $2000 per ton peanuts but the way it is shaping up now I might just get to see that next year. At 93 cents, farmers stock should be at $1000 per ton right now.

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