Peanut Crop Worst In 30 Years! Prices Explode to the Upside!!!

Revenge of the "Peanut Allergy" Crowd.   Hoarding exacerbates price rise.

Drought and heat waves in Georgia and Texas have devastated the U.S. peanut crop, and that means the price of peanut butter is about to skyrocket. America's favorite is spreading thin. Patrick Jones says the alternative will have you holding your nose.

"There are good options for farmers at this time so there is absoutely no need sign a cheap contract for 2012. Why plant peanuts for $1500 per acre when you can make $2200 per acre on corn? That may well be the question for 2012.

Of recent, shelled goods have traded at $1.20 and yet all the farmer is being offered is $1000. It has always been a rule of thumb that the farmer should get about $100 for every ten cents of shelled good price. USDA's posted price would have normally been pretty accurate but the farmer is not receiving what has long been an industry norm."

http://peanutsdon.blogspot.com/
Don Koehler, Executive Director of the Georgia Peanut Commission since August 1, 1986.



Hoard Peanut Butter as Prices Soar: 4 Stocks to Benefit
By Karvy Global 11/02/11 - 03:23 PM EDT

Stock quotes in this article: KFT, SJM, CAG, LNCE

NEW YORK (TheStreet) -- Peanut butter lovers will soon face the brunt of soaring prices as scorching heat and a drought in southern U.S. have ravaged the crop, resulting in zero yield in key producing states this year. On average, Americans spend almost $800 million a year on peanut butter products every year. The average American consumes more than six pounds of peanuts and peanut butter products each year, according to the National Peanut Board.

Prices for a ton of runner peanuts, used to make peanut butter, touched $1,200 mid-October, compared to $450 per ton in the same month a year ago, according to the U.S. Department of Agriculture. Peanut production stood at 3.63 billion pounds in 2011, down 13% from last year's 4.16 billion pounds, the Department of Agriculture reveals.


Source:
 http://www.thestreet.com/_medge/newsanalysis/food-beverage/11297658.html

Famous Peanut Farmers

Georgia is the number-one peanut-producing state in the country, accounting for approximately 45 percent of the crop's national acreage and production. In 2005 Georgia farmers harvested 755,000 acres of peanuts, the official state crop, for a yield of 2.2 billion pounds. The state's most famous peanut farmer, U.S. president Jimmy Carter, and his family raised the crop for decades in Sumter County.