Global Peanut Surplus Drives Down U.S. Peanut Prices
Peanut farmers across the U.S. are watching prices fall this season as a global peanut surplus weighs heavily on the market. Many producers are reporting that only about half of their crop is selling at $500 per ton, while the rest is being placed into the loan program at $355 per ton — a sign of oversupply and weak export demand.
The key driver behind this market downturn lies overseas, where major peanut-producing countries have ramped up production to record levels in 2025.
China’s Expansion and Weak Consumption
China, the world’s largest peanut producer, expanded its peanut acreage by 12%, bringing total production to 19 million metric tons — up sharply from 16.5 million metric tons last year. While domestic production is booming, weak domestic consumption has limited peanut imports. China was once a major buyer of imported peanuts, particularly for peanut oil production, but that demand has slowed significantly.
India’s Record-Breaking Crop Adds to Oversupply
Adding to the global glut, India has also harvested a record peanut crop of 12 million metric tons, creating a major oversupply in Asian markets. The combination of higher output from India and China has pushed global peanut inventories to their highest levels in years, reducing import opportunities for U.S. farmers.
U.S. Peanut Production Up 15% from Last Year
Domestically, U.S. farmers planted 1.95 million acres of peanuts, up 8% from last year, according to USDA estimates. Production is now forecast to reach 7.41 billion pounds, a 15% increase from 2024. While strong yields reflect favorable growing conditions, the expanded output is adding pressure to an already saturated market.
Argentina Adds More to the Global Supply
Meanwhile, Argentina has reported a 50% increase in peanut production, totaling 1.45 million metric tons for the 2025 season. With all major producers bringing in larger crops, global peanut availability has risen sharply — and prices have responded accordingly.
From the U.S. to China, India, and Argentina, peanut production growth is outpacing demand, creating one of the most competitive global markets in recent years. For U.S. peanut farmers, that means lower prices, fewer export opportunities, and more reliance on loan programs to weather the market downturn.
Until international demand — particularly from China — rebounds, the peanut market is likely to remain under pressure, keeping a close eye on global supply trends heading into 2026.
Audio Reporting by Tyron Spearman for Southeast AgNet.