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PEANUT MARKETING NEWS – July 1, 2019 – Tyron Spearman, Editor (78)

PEANUT STOCKS AND PROCESSING REPORT – USDA’s Peanut Stocks and Processing Report was released June 27, 2019
for the month of May, 2019, the 10th month of the marketing year.
Peanut stocks in commercial storage as of May 31, 2019 totaled 3.080 billion pounds equivalent farmer stock, compared to
3.36 billion pounds one year ago, DOWN 8.3%. This total includes 2.33 billion pounds of actual farmer stock, DOWN 7.2%.
Shelled peanuts on hand, farmer stock equivalent, totaled 701 million pounds, DOWN 8.7%. Roasted stocks were 43.2 million
pounds, DOWN 33.0% from same month last year.
Total shelled peanut stocks showed 527 million pounds, DOWN 8.8% with edible grades reaching 506 million pounds,
down 9.0%. Oil stocks totaled 21.3 million pounds, DOWN 0.5%.
Edible stocks of shelled peanuts by type, Virginia & Valencia stocks are at 80.0 million pounds, DOWN 10.7% from last
year. Runners were 368 million pounds, DOWN 9.4% and Spanish totaled 58.4 million lbs, DOWN 5.2% from last year.
In MAY shellers milled 390 million pounds, UP 5.7% vs same month as last year.
Commercial processors used 205 million pounds of shelled edible peanuts, UP 5.7% from May of last year.
Government purchases for Nutrition Program in Aug-Apr totaled 21.897 million lbs of peanut butter, down 4.6% from
last year. Roasted peanuts totaled 233,280 pounds, down 66.6% from last year. Overall, nutrition program purchases were
down 3.9% for the 10 month period. That’s a big surprise as peanut butter was being produced from forfeits and tariff
mitigation and should have shown up in Nutrition purchases.
Month(1000 #) Peanut candy Snack peanuts Peanut butter Total edibles In-shell P'nuts
Aug 18- May. 2019 313,505 385,092 1,114,986 1,904,140 114,319
Aug 17- May. 2018 320,725 429,941 1,088,094 1,911,929 118,350
DOWN – 2.34 DOWN – 10.1% UP + 2.5% DOWN – 0.4 % DOWN – 3.4%
May2019/ May2018 DOWN – 29.2% DOWN – 13.2% UP + 8.2% UP + 5.8 % DOWN – 10.8%
U.S. Peanut usage domestically is about the same as last year after 10 months, down only 0.4%. The shining star was peanut
butter, up 8.2% for the month and positive for the 10 months with a +2.5%. Usage of peanuts in candy and snacks were
disappointing, now down 2.34% for the year and snacks down 10.1%. Candy was down 29.2% in May vs last May. Lots of
questions on the government purchases as 10 month stretch is down 4.6%. Major buys of peanut butter were made from
forfeited peanuts and trade mitigation. Maybe those numbers will tabulate in the June report.
ECONOMIC OUTLOOK – Dr. Michael Swanson, Senior VP and an Agricultural Economist with Wells Fargo and Company told
USA Peanut Congress that today the U.S. has 328 million individuals and all economies are personal. Will the U.S. have a
recession? Not likely, if so, it would be short. Everyone has to be a strategic manager. The Federal Reserve is watching seeking a
balance and the 2% inflation is considered stable. Economic structure is changing. After WW II, 40% of the economy was in
services, today that is 70%. Structure is vested in capital, labor and technological changes.
Swanson said that when you change the rules, you change the game. Consider when 40% of the corn goes to ethanol or
battery technology, now 7-9% improvement annually.
He said, “When it involves people, there are no constants in economics. People can always change their minds, and that
changes everything.” Agriculture will continue to substitute technology for labor. Purchasing 3rd party services will be a
continuing trend and farmers have to remember, “You only get paid for whatever you bring to the game.” Success will be in
average cost…adopt and adapt is a learning process.
EXPORTS UP – U.S. peanut exports are up for the month of April. USDA and the American Peanut Council reports total kernel
exports in April, 2019 totaled 48,107 MT, that’s up 0.3% from last year’s 47,972 MT. In 2017, peanut exports totaled 40,932 MT.
Top buyers in April, 2019 were Mexico, Canada, China, The Netherlands and Vietnam (order of volume).
PEANUT RESEARCHERS MEET – Late registration is still welcomed at the 51st APRES Annual Meeting of the American
Peanut and Research Society on July 9-11, 2019 at The Hotel at Auburn University & Dixon Conference Center at Auburn, AL.
Over 140 abstracts will be presented. A highlight will be a discussion of the NEXT 50 YEARS – A panel discusses “what
changes/opportunities/challenges do you foresee in your global peanut business?” Representing the various segments will be
- Peanut Butter Manufacturers – Dr. Chris Liebold, the J.M. Smucker Company
- Agriculture – Donald Chase, Georgia Peanut Commission
- Peanut Shellers – Karl Zimmer, Premium Peanut
- Peanut Confections – John Bennett, Mars
The Opening Session for the panel is Wednesday, July 10 at 8 AM(CST). To register, see American Peanut Research and
Education Society [kim.cutchins@apresinc.com].