USDA Issues New Update on U.S. Peanut Production and Supply Outlook
The U.S. Department of Agriculture has released a new update on peanut production and supply across the country, showing a significant increase in output compared to the previous year. According to USDA, total peanut production for the most recent crop year is now estimated at 7.2 billion pounds, or 3,590,000 tons, marking an 11 percent increase year over year.
Acreage levels also came in higher than originally expected. While planted acreage remained largely unchanged from the first prediction, total acreage is now estimated to be up about 163 million acres. That increase places overall peanut acreage roughly 9.5 percent higher than last year, contributing to the larger production number.
On the demand side, domestic food use of peanuts is projected to rise only modestly. Peanuts used for food within the U.S. are expected to increase by just one-half of one percent. However, the National Peanut Board has signaled plans to work aggressively to stimulate additional demand for peanuts and peanut butter through expanded promotion and marketing efforts.
Export demand remains a key variable in the overall supply and demand picture. USDA is currently projecting peanut exports to increase by 17.8 percent in the coming year, with shipments estimated at approximately 700,000 tons. Despite that optimistic outlook, export movement so far has not met expectations, raising questions about whether those targets can be fully realized.
Ending stocks are drawing close attention from producers. USDA now estimates peanut ending stocks at 970,000 tons. While that figure is lower than the previous estimate—despite the 11 percent increase in production—it still indicates a sizeable volume of peanuts being carried forward into the next marketing year.
Those carryover supplies are expected to weigh on prices as the industry moves forward. With increased production, higher acreage, and lingering stocks, price pressure could become more pronounced as discussions around the new farm bill begin to take shape.
Overall, the latest USDA update points to a well-supplied peanut market, with growth on the production side outpacing gains in demand. How effectively domestic promotion and export markets absorb that supply will play a critical role in shaping peanut prices and producer returns in the year ahead.
Audio Reporting by Tyron Spearman for Southeast AgNet.