Let’s look at the peanut market right now.
As U.S. peanut farmers bring in their 2025 harvest, they are facing growing concern over falling prices and reduced farmer stock contracts. Despite a solid crop, the market is reacting to an oversupply globally that is driving prices lower.
“Peanut farmers are bringing in their crop, but why is that the price falling down? What is happening in the peanut market? Prices continue to drop at the shale price level and also the farmer stock contracts are either non-existent or have are being reduced.”
According to industry traders, the peanut market is experiencing heavy downward pressure due to bumper crops in several major peanut-producing countries. “Industry traders report today that due to bumper crops in Argentina, Brazil, USA, and India, the market is not likely to see a reversal of the low prices for the next two years.”
One official hinted at a potential turning point but tied it to planting trends in South America. “One official estimates that the low prices, that trend could be somewhat reversed if Argentina and Brazil register a sharp decline in planting and they are right now moving into their planting season as the USA is the harvest season.”
Much hinges on what happens next in the Southern Hemisphere. “So we’ll have to see if they reduce the acreage coming up for 25 and 26. One broker predicted there will be low prices until the 2026-27 crop year.”
Argentina, in particular, is drawing attention for its increasing output. “Argentina is another one we’ve been watching. Both production and exports are expected to reach record levels this year and that is pushing down the price in America. Acreage there has increased 23% and that is what is impacting the market on peanuts right now. That is being reduced.”
For now, U.S. peanut farmers must navigate a challenging price environment with limited contracting opportunities. With global supply far outpacing demand, it may be several years before prices recover.
Audio Reporting by Tyron Spearman for Southeast AgNet. Peanut Market Dropping
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