Each month, the USDA releases its Peanut Stocks and Processing report, a valuable benchmark for U.S. peanut farmers and processors. The latest numbers for the period August through April reveal a mixed story of consumer behavior, government purchasing, and market shifts.
Key Peanut Product Trends
- Raw shelled peanuts, the primary market product, are down 1.6% over the nine-month period.
- Peanut butter usage slipped 2.1%, a modest but notable decline.
- Peanut candy saw a sharper drop, down 7.8%, suggesting shifting consumer snack preferences.
Snack Market Grows
In contrast, peanuts used in snack foods rose 3.9% in the most recent month and are up 3.7% for the year overall. This suggests strong consumer demand in the snack sector, a bright spot for growers looking to diversify product channels.
Government Purchases Provide Support
The USDA also continues to support peanut demand through bulk purchasing for nutrition programs. In the most recent month alone, the agency bought 2.31 million pounds of peanut butter for the school lunch program, although no roasted peanuts were purchased this cycle.
So far, this fiscal year, government purchases have totaled 20.9 million pounds, a significant 18.5% increase over the previous year. This purchasing boost helps stabilize demand and supports pricing at the farm level.
Overall Summary
Despite gains in snack food usage and government buying, total peanut utilization is slightly down 2%, with in-shell peanut use falling 5%. These numbers suggest that while demand is soft in traditional categories like candy and butter, emerging markets and institutional support are helping to balance the industry outlook.
Stay tuned to Southeast AgNet for continued updates on market activity in peanuts and other key U.S. commodities.
Tyron Spearman reporting for Southeast AgNet