Peanut prices are feeling the pressure as the 2025 harvest season kicks into full gear. With an estimated 3.6 million ton peanut crop, market prices are beginning to decline sharply. Farmers and buyers alike are closely watching this trend as raw shell peanut prices continue to fall.
“Raw shell peanut prices were worth 64 cents in January, that’s 64 cents per pound, but they’ve dropped to 49 cents per pound for medium runners this week.” This significant price decline is largely due to increasing supply and market hesitancy. As one broker put it, “the peanut market continues to be dead, with buyers thinking, well, they could be lower if this crop estimate continues to go up.”
It’s now common to hear prices like 48 or 49 cents per pound on Southeast medium runners, and “nobody’s picking up on delivering at those prices.” Some brokers speculate prices may drop further—“going to drop again to 45 cents.” It’s a clear buyer’s market for peanuts right now, and as another broker noted, “maybe one day they’ll start buying because they’ll need supplies.”
Farmers are bearing the brunt of these price fluctuations. “Early contracts were $500 a ton on southeastern runners for half of the production, but the other half was non-priced.” Some were fortunate to receive a $25 per ton premium for irrigated peanuts or seed production. But overall, “some farmers are worried that lower prices on those uncontracted peanuts may continue to go down, down, down.”
Meanwhile, warehouse space is tightening. “Warehouse space is needed, and harvesting has begun across the southeast.” With yields increasing and limited storage, urgency is mounting in regional markets.
For peanut farmers, processors, and buyers, understanding these shifts is critical. The combination of a large harvest, low shell prices, and uncertain demand could define the 2025 peanut market.
Audio Reporting by Tyron Spearman for Southeast AgNet. Peanut Shell Prices Starting to Decline