Peanuts, Market Report, 6th June 2022
The USDA Peanut Planting Report was released on June 30th and has the total acreage for 2022 crop at 1,543,000 acres, down > Near-term/long-term US just below 3% compared to last year. The May Peanut Stocks & demand impacts Processing Report shows usage in all major segments (candy, s pala ol seals snacks, and peanut butter) down by 5.5% compared to last year. For the crop year to date, the peanut butter segment is down 2.5% versus last year. Total edible usage is down 0.6%.
The 2021 crop carryout is projected to be at least 1.16 million tons (possibly in excess of 1.2 million tons), with total demand forecast to be 3.07 million tons (domestic and export). This equates to a stocks-to-use ratio of 38% (139 day supply).
As of June 19th, the US crop was 97% planted. Overall, the crop condition report was mostly positive, with conditions declining in most states as weather continues to be hot and dry, especially in Texas where conditions are fair to poor. The southeast US has received very little rainfall over the past two weeks, and temperatures are soaring to record breaking numbers. There is a good chance for rain the first week of July through most of the southeast growing regions. Significant rainfall will be much needed in the coming weeks for all of the US peanut growing region.
Seemingly, no change in grower sentiment...they remain bullish, as does the market in general. There is little to no farmer stock contracting activity at the moment, nor has there been in recent weeks.