What I heard at this year's International Peanut Forum from other origins seems to follow what I hear from our growers...cost has risen and we cannot grow peanuts much cheaper than they are now. That is a new attitude from what used to be a cut-throat business only a few years back. It seems farmers worldwide have decided they need a profit, too.
On other notes, China suggested they would be using more of their peanuts for edible oil and will likely at some point become an importer of edible peanuts. India suggested a similar trend at some future point.
Meanwhile, it is hot and dry in the Southeast. A Bermuda High has set in and is keeping us from getting much needed rain to plant non-irrigated peanuts. Some models suggest it to weaken and the chance or rain to become more prominent. The problem is until we have a major rain event we are so dry a few tenths will not make the moisture meet. This has been complicated by an April filled with Summer temperatures and March like winds.
This is shaping up to be another very interesting year. Farmers without a contract at planting should watch the markets closely and keep an eye on conditions.
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