Peanuts Celebrate Price Stability

The prices for some of the biggest U.S. commodities have slid lower for several months, but peanut prices have held steady, especially compared to other crops like corn, soybeans, cotton, wheat, and rice. Tristan Rines has more...

“While peanut prices have decreased slightly over the past few years, they’re projected to average about $530 per ton in the 2024-2025 marketing year, just under the previous years’ prices of $536 and $538 per ton. This price stability is tied to low, stable peanut ending stocks, a trend that looks set to continue into 2025. Even with a ten percent increase in planted acreage this year, peanut production is expected to rise to 3.3 million tons, an 11 percent jump from 2023.

Georgia leads the charge, with an expected 1.65 million tons of peanuts, followed by Florida, Alabama, and Texas. But it’s not all smooth sailing: the U.S. peanut yield is forecast to drop slightly, marking the lowest yield since 2016, which could limit total production."

On the demand side, domestic use is up, particularly in the peanut processing industry, while exports are expected to drop by 18 percent. As a result, while ending stocks will rise, they’ll still be among the lowest levels in nearly a decade. In the end, tight supplies could keep peanut prices relatively high in 2025, but rising production costs continue to put pressure on farmers' profitability.