The peanut market is having a difficult year. While the 2025 crop looks strong with higher-than-average yields, prices continue to fall, leaving many farmers facing tight margins and uncertainty.
“Well, the peanut market is having a hard time this year having a bigger crop than normal. The crop looks very good and that’s pushed shell prices down along with farmer stock prices. Raw shell peanut runner prices were 64 cent a pound in January and have dropped to 49 cents a pound for medium runners this time of the year.”
Supply has outpaced demand, and buyers are hesitant to meet even the current low price levels. “One broker told me today that the peanut market continues to be dead. With it with the buyers thinking they may be two or three cents below what the peanut prices are offered.”
At the buying points, farmers are also seeing reduced returns from shellers. “They said also farmers are experiencing lower prices from the shellers as the buy at the buying points. Early contracts at the buying points were five hundred dollars per ton for southeastern runners. Oh, but it was limited to half of your last year’s production.”
Some premiums were offered, but only under specific conditions. “Some received a $25 premium for peanuts being irrigated and another $25 a ton if they were in seed production.”
Meanwhile, farmers holding uncontracted peanuts from previous seasons are struggling to offload inventory. “Some farmers are still trying to sell uncontracted peanuts that have been stored and are in the loan at this time. They’re trying to sell those and the market is depressed trying to get these warehouses cleared out. The need the warehouses open for the new crop.”
While domestic peanut usage has shown slight improvement, global demand remains stagnant. “And have a demand right now a 1% increase in peanut usage domestically, but exports have not started moving and the market even down is not trading.”
With depressed prices, oversupply, and limited export activity, peanut producers face a challenging marketing season. Until global demand increases or production adjusts, market conditions may remain weak into the next crop year.
Audio Reporting by Tyron Spearman for Southeast AgNet. Review of Peanut Market In Southeast
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