U.S. peanut production is forecast by the USDA at 3.53 billion pounds, down 32 percent from last year and down 4 percent from 2007.

Area for harvest is expected to total 1.07 million acres, unchanged from June but down 29 percent from 2008. Yields are expected to average 3,301 pounds per acre, down 115 pounds from last year's record yield, but would be the second highest yield on record if realized.

Planted acreage, at 1.10 million, is unchanged from the June estimate.

Production in the Southeast States (Alabama, Florida, Georgia, Mississippi, and South Carolina) is expected to total 2.64 billion pounds, down 30 percent from last year's production. As of Aug. 1, crop development in the region was behind normal due to planting delays in the spring caused by wet field conditions. Despite the delay in development, the majority of the acreage was rated in fair to good condition as of Aug. 2.