The U.S. peanut market remains unusually quiet in both domestic and international trade, as farmers and brokers alike await key announcements that could shape the rest of the season.
No new peanut contracts have been issued so far this season, and that’s creating growing concern among growers who are still working off the limited contracts from earlier in the year.
“No new contracts have been issued so far. Earlier in the season, peanut farmers were receiving $500 per ton on the first half of the same production total from last year, but no new contracts have been issued. They’re waiting on a special announcement on the certified peanut acres that are planted by state. Those will be announced this week.”
With so much uncertainty, brokers say both buyers and sellers are sitting still.
“Brokers are saying, I’ve never seen the market so quiet on the domestic front or internationally. Buyers are just keep sharpening their knives hoping to get prices lower and are sitting on the sideline, one broker said.”
Forecasts for higher peanut yields in 2025 are also putting downward pressure on price expectations.
“With the estimated acreage and predicted yield increase, they say the U.S. will make a 4,000 pound average yield. That’s going to put too many peanuts in the warehouse and push prices lower. The crop is not in the warehouse as of yet, and we have a long way to go, so we’ll have to wait and see if that comes true.”
International markets are also paused, awaiting clarity on tariffs.
“The unknowns for the international market, they’re sitting on the sideline too, unknowing what to do about the tariffs. Those tariffs have not been announced, so therefore they’re waiting to buy peanuts as well.”
With increased competition from Argentina, Brazil, and India, U.S. peanut exporters face challenges in pricing and demand.
“The export market has other cheaper options this year from Argentina, Brazil, and India, so that market is slow to develop right now as well.”
“So we’ll wait a while to make sure the market is developed as peanuts get ready to come to the market.”
Audio Reporting by Tyron Spearman for Southeast AgNet.