Peanuts: Bearish Report, Narrowed Price Ranges With Competitors
USDA’s recent peanut report for the U.S. crop is bearish. It estimated a reduction of 33% in plantings when the market expected between 35% and 40%.
The U.S. crop will continue leading the market and its price tendencies.
The market will feel the impact for the peanuts that are already in the loan (1.061.115 short tons farmers stock at June 26, 2013) and for the production in the 2013 U.S. season.
As per U.S. analysts, most of what was planted in the 2013 crop is not contracted. Also, much of the inventory of the loan (2012 crop) is in the hands of the farmers, which also is uncontracted.
For August shipping positions onwards, the trend is bearish.
Buyers are convinced that further delay will help, price-wise, with the thinking that in today’s market there basically are enough peanuts.
Argentina and the U.S., as well as Brazil, are able to offer at least until December shipment. Prices for peanuts from these 3 countries are not so far apart anymore.
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