USDA Peanut Stocks and Processing Report for August Shows Mixed Market Trends
The USDA has released its Peanut Stocks and Processing Report for the month of August, revealing a combination of increases in storage and shelling, but declines in peanut usage across multiple product categories.
The report shows that peanut in storage is about 1.51 billion pounds. That’s up 33.6% from the previous year. Shell peanuts equivalent showed 680 million pounds. That’s up 9.7. Roasted stocks, 35.3 million pounds. That is down 3.7%.
In terms of processing activity, shellers milled 389 million pounds. That is 4% more than last August. But the processors used 192 million pounds, and that is 3% less than last August. This indicates a higher volume being shelled, but slightly less being utilized by processors, suggesting a potential slow-down in product demand or changes in consumer behavior.
The report also noted government purchases during August. 2.2 billion pounds of peanut butter put in the school lunch program and other federal domestic programs. 51,000 pounds of roasted peanuts were also purchased.
Looking at product categories, the USDA report outlines several usage trends:
- Raw peanuts in primary products is down 3.4% compared to last August.
- Peanut butter usage is down 4.6% for August.
- Peanut candy usage is up 3.5% after several months of being in decline.
- Peanuts in snacks are down 1.3% after showing several months of increases.
While candy usage offers a bright spot, the overall trend points to a sluggish peanut market. As summarized in the report, “overall, the market is moving slow, but usage is down 3.4%.”
These fluctuations highlight the importance of closely watching processing and consumption patterns as producers, processors, and retailers navigate a changing market landscape. With government support programs still actively purchasing peanut products, the outlook remains cautiously optimistic, even amid signs of reduced consumer demand in several key categories.
Audio Reporting by Tyron Spearman for Southeast AgNet.