Peanut Market Update: Lower Prices, Soft Demand, and Global Acreage Cuts
The peanut market continues to face pressure as lower prices and shifting global dynamics shape the outlook for the coming year. According to Broker Reports, market participants looking ahead to next season are focused on the 26–27 estimate for how many peanuts may ultimately be planted. With prices currently depressed, there is growing concern that acreage could be reduced in the upcoming season.
One key factor weighing on the market is weaker demand. Exports are shipping fewer peanuts, while the domestic market is experiencing a lull, currently down about 4%. This slowdown has contributed to excess supply and reduced-price strength, leaving growers cautious about forward planning and profitability.
Overall, analysts note there is a clear need for an expansion in demand if peanuts are to become more profitable in the coming year. Despite lower prices, alternative crops such as cotton and corn are not currently priced high enough to encourage a large-scale shift away from peanuts. As a result, many producers may stick with existing rotations while closely monitoring price signals.
Globally, peanut-producing countries are already responding to oversupply concerns. In Argentina, officials report their peanut crop is expected to cover approximately 420,000 hectares, representing a cutback of about 15.5%. This reduction is aimed at tightening supplies and improving price prospects after a challenging marketing year.
Brazil has also taken steps to curb production. The country has reported cutting peanut acreage by about 20% in an effort to prevent excessive volumes from entering the global market. These coordinated reductions signal growing frustration among international producers with the impact of oversupply on prices.
Last year, extra peanuts produced across multiple peanut-growing regions contributed to the current downturn in prices. As the new year begins, producers both domestically and abroad are expressing dissatisfaction with the lower price environment and are hoping that acreage adjustments and improved demand can help stabilize the market.
Looking ahead, the peanut market’s recovery will likely depend on a balance of disciplined production, improved export movement, and renewed domestic demand to absorb supplies and support stronger prices.
Audio Reporting by Tyron Spearman for Southeast AgNet.