In reporting from the peanut industry, they are saying now despite the USDA reporting domestic demand up 5.1 percent, manufacturers essentially are saying that peanut butter manufacturers will tell that the demand at this time is flat or possibly down.
This in turn results in a lack demand for peanuts right now while it will probably last through the end of the year, if not the first quarter of next year. Prices do not seem to matter, it says. Demand is just not there.
Sellers are probably long on the production because of last year’s crop, but unsure about the 2026 crop. Right now, it’s in the field and it needs water badly. The U.S. supply is uncertain as of this time on the crop and it’s looking increasingly likely that the carryover from last year will keep the market very low.
Forfeitures are also being discussed with the U.S. government. They could forfeit some peanuts to the government and sell at a lower price. That’s another cloud over the market right now.
New crop is at a standstill, they said, with prices for farmer stock continuing to go a little bit higher for farmers that are irrigated.
Audio Reporting by Tyron Spearman for Southeast AgNet.