Shelled goods hit $1.20 and if by any strange chance you have any 2010 price later peanuts they are worth $1300 give or take a little per ton.
So why was the market at $800 to $850 and suddenly jumped to $1000. $1000 is $300 below the market and if the tariff at the buying point is not too bad it might behoove a farmer to seek a toll sheller and maximize his value. I am still convinced we see a situation not unlike 1990 when prices went to a high of $1436 and I really believe when somebody has to shut the factory down next year farmers stock could well be $500 higher than the current offer of $1000.
Farmers need to be patient. The lack of competition in the shelling industry can only be managed by a strong resolve, a willingness to be creative, and using the calendar to your advantage.
Right now the sellers are reeling from quality issues and because PAC is gone and there is no indemnification fund sheller would almost seem to be indemnifying crop quality issues by offering farmers prices below the market.
No comments:
Post a Comment