The 2020 US peanut acreage is forecast to expand by 6% year-on-year, to 1.514 million acres, according to the USDA June acreage report. This is 15,000 acres less than projected by the USDA back in March.
Just before the USDA published its new acreage estimates, Scott Monfort, extension peanut agronomist at the University of Georgia, estimated the 2020 US peanut acreage at 1.586 million acres, an increase of 12% y-o-y.
The US is looking towards a larger and good quality crop this year, after a disappointing 2019 harvest. Last year, the crop was damaged by severe heat, decreasing the volume of peanuts available for direct consumption due to the presence of higher aflatoxin levels.
The 2020 plantings have been delayed in Georgia, US’ largest peanut producing state, due to cold and wet weather conditions. However, as of 28th June, 56% of Georgia’s peanuts were pegging, steady with the 2019/20 season and 10% ahead of the five-year average.
Meanwhile, the US peanuts delivered to the EU continue to trade at inflated levels, at USD 1,980 per tonne (up 55% y-o-y) as of 24th June, although the EU stocks might be extremely tight. On the other hand, the Mintec price of Argentinian peanuts delivered to the EU continues trending down due to increased availability, with prices sitting at USD 1,446 per tonne, down 4% m-o-m and 7% q-o-q.