PEANUT MARKETING NEWS – August 17, 2020 – Tyron Spearman, Editor (110)

PEANUT SPECIALIST REPORT ON U.S. CROP – At the virtual meeting of the peanut shellers and buying points, Kris Balkcom
reported from state peanut specialist about crop problems and potential. Here is a summary of Southeast:
GEORGIA – Scott Monfort, UGA –Updated acreage est. 750K, (Actual – 789 K, Mainly O6G, O9B, 12Y, 16HO, FloRun331,
Ga18RU). Variety issues: Disease with O9B and germ with O6G, Skippy stands and increased TSWV have been the main
issues this growing season. Harvest should start 1st September, Yield Potential: The dry land crop is struggling in many areas.
Irrigated looks good except for fields with stand issues and virus. Yield should be down overall this year unless the rain
situation changes.
FLORIDA - David Wright, UFL, 170 K (actual, 159K) Acreage may be slightly more as it was dry at the end of cotton planting
season. O6G main variety with 331 and GA 12Y continues to grow in popularity due to yield in stress situations. Both 331 and
12Y do well in stress situations since they produce a lot of vine and have high yield capability. Many people are learning how
to manage 12Y plus it can be planted early due to the disease resistance. Crop condition: Been good growing season overall so
far. There are some spots that have been a little too dry and some too wet but overall a good season to this point. Harvest is
starting in Levy county area and Ocala. Most of the panhandle will be in September. Yield potential: Could make a near record
yield, if weather holds.
ALABAMA – Kris Balkcom, Auburn, (actual 160K)173 K, Still feel our acreage will be in the 170’s. Still mainly O6G’s but some
acres of many others. Concerned with TSWV in 331 and many growers have issues with increased lsk’s with 12Y. AUNPL17
can perform well in a high disease environment due to its disease package. Lots of seed issues with marginal stands scattered
across the state resulting in TSW issues. Too early to tell how bad that will hurt us. Overall crop looked pretty good, but the
dry weather and heat has taken its toll for the past 10-14 days. Harvest should start early September. I feel like due to some of
the stand issues, pockets of dry weather, and extreme heat that we will not break any yield records this year. However, August
will help determine the size of our crop.
SOUTH CAROLINA - Dan Anco, Clemson ,70 K increased to 75K (Actual 81K) Bailey, Sullivan, O9B, O6G, 297, 33, and some
Emery. Some runner cultivar seed quality was suboptimal following the 2019 season. Stand issues, TSW in places, erratic
weather has affected planting and management timing. Rain is needed to reduce stress and help pod fill. Harvest should start
first week of September. Yield Potential: Some areas have been more fortunate with rainfall, overall, still good potential, but
need good weather to finish out and harvest. Concerns: Adverse weather during harvest would add challenges.
HEARD AT THE PRE-HARVEST VIRTUAL MEETING
Rep. Austin Scott, (R), Hope that consumers realize the importance of the food supply chain as shelves were empty during the
pandemic. We’ve got to get more revenue to the farmer. I am worried about China’s influence on agriculture, especially
production of agricultural chemicals. Rural areas need to report on the census or we will lose more seats and funding.
Rep. Drew Ferguson (R), Excited about the economy and the especially the Mexico/Canada Trade agreement, It is a blueprint
for other nations. Now we will know the MC rules and implement them fairly. Committed to challenging China in trade
agreements as they have been unfair in how they have operated.
Karl Zimmer, Premium Peanut, Reminded the industry that aflatoxin is the single largest risk for the peanut industry. He
noted that 37% of the 2019 crop failed the minimum standards. Estimated that the $120 million economic impact or $84 per
acre. Committee is taking action as a diverse Taskforce of 22 members from all segments of the peanut supply chain have been
selected to tackle the problem.

CHINA IMPORTING U.S. PEANUTS - China peanut imports will reach a record high in MY 2019/20, rising to nearly 1.4
million tons and one-third of global trade in peanuts. For the first time, China will be the largest import market, surpassing the
next-largest market (the European Union) by more than 40 percent. MY 2019/20 will also be the first year China is a net
importer of peanuts.
China’s imports in 2020/21 will remain high but are forecast to fall year-on-year due to lower exportable supplies. China is
the world’s largest producer and consumer of peanuts. Prior to 2014/15, China’s domestic production was largely sufficient to
meet steadily rising local demand. In the past 5 years, China has begun importing larger quantities of peanuts, mostly for
crushing into meal for feed and oil for food use.
While China’s 2019/20 imports are a record high, they will only represent 7 percent of its domestic consumption. China’s
breakneck peanut imports are driven by slow domestic production growth and record-high global beginning stocks in 2019/20
that made imports more attractive. Chinese importers took advantage of all-time-high stocks in Senegal and Sudan as well as
large U.S. stocks. Together these three countries account for nearly 90 percent of China’s imports in 2019/20 as of June.