U.S. Peanut Stocks Report Shows Surplus and Declining Demand
The latest U.S. peanut stocks and processing report brings concerning news for peanut farmers heading into the new marketing year. Rising inventories and declining consumer demand are creating pressure on peanut prices and limiting contract opportunities for growers.
According to the report from the United States Department of Agriculture, total peanut stocks climbed to 5.51 billion pounds — an increase of 26 percent compared to the same time last year. That significant jump signals a growing surplus in the marketplace.
Shelled peanuts on hand are up even more sharply, rising 44 percent year-over-year. With more peanuts in storage and weaker product movement, the peanut market decline in 2026 is becoming a growing concern for producers.
Peanut Usage Trends Show Weakness
Demand across several key peanut product categories is trending downward:
- Raw shell peanuts used in primary products fell 4.1 percent from August through December compared to the same five-month period last year.
- Peanut butter usage dropped 4 percent during that same timeframe.
- Peanut candy usage declined 2.7 percent.
- Peanut snack consumption fell approximately 3.6 percent.
The decline in peanut butter demand, candy production, and snack consumption is contributing to slower overall market movement. With consumption softening across multiple categories, the surplus is unlikely to shrink quickly without stronger domestic or export demand.
Impact on Peanut Prices and Contracts
The oversupply is directly affecting peanut prices for the upcoming season. Many farmers are finding that traditional production contracts are not currently being offered. Instead, growers are being directed toward the federal loan program.
For the coming year, the peanut loan rate is set at $390 per ton. However, industry leaders note that producers cannot profitably grow peanuts relying solely on the loan rate.
Peanut Industry Outlook
To improve the peanut industry outlook, demand will need to increase both domestically and internationally. Expanding export markets and stimulating consumer demand at home will be critical to strengthening prices and restoring profitability for farmers.
Until then, elevated peanut stocks and declining usage remain key challenges facing the industry in 2026.
Audio Reporting by Tyron Spearman for Southeast AgNet.