The peanut market remains quiet from both the buyer and seller side. There is availability for current crop in the mid 50’s but no sellers for new crop. Buyers are aware that carry forward numbers are high and no urgency to book any additional peanuts.

                 Shellers cannot contract peanuts from farmers for new crop so they don’t want to sell to manufacturers. Shellers are off the market as farmers are unwilling to contract at the sheller’s offer of mostly $500 per ton for runner peanuts and Virginias mostly at $600 per ton.  We don’t see much downside in the market with production costs higher but any dry weather and we are going much higher in prices for new crop. 

                 Farmers will plant without further contracting and thus will be very right or wrong depending on acres, yields and weather. What about total acres?  Most buying points are reporting that farmers are planting about the same as last year. 

              USDA estimates that growers intend to plant 1.57 million acres in 2022, down 1 percent from 2021.  In Georgia, the largest peanut producing State, expected planted area is down 3 percent from 2021. Increases in planted area are expected in Mississippi, North Carolina, South Carolina, Texas, and Virginia.

               A  total of 1.57 million acres of planted peanuts with an average yield of 4,100 lbs per acre piles up 3,218,500 tons of peanuts.  Demand isestimated at 3,094,000 tons and that means that the carry forward of 1,141,000 tons will increase next season. Even though cotton and corn are at record prices, it will take a drought or increase in demand to move the peanut market.

              Shellers are caught in the middle. Farmers are sailing into that unknown market territory with few contracts, but the market loan gives them some protection, especially those coupled with the PLC (Price Loss Coverage) on base acres and any COOP support from the previous year.

              Average price of peanuts has been pushed higher this year and is estimated by USDA at $484 per ton.  Subtract the average price from reference price of $535 per ton and that yields a PLC payment of $51 per ton in October for the previous year.

              Peanut usage is UP 0.6% during the last 8 months for raw shelled peanuts in primary products.   Peanut butter is down 1.7% for the 8-month period with March vs March showed down 5%.  Candy was a winner in March up an amazing 30.4%. Snacks are down 4.3% along with in-shells, down 3.5% for the year but March jumped up 8.7%.

             The market is strong, looks like we need a peanut butter campaign while we are eating peanut candy. The talk of a food shortage could benefit peanut butter if consumers stock up.  USDA predicts that domestic food use is expected to rise only 1 percent for the year.

             Peanut exports are predicted to decrease 12% this year. For the first 2 months, US peanut. exports are down 18.25% compared to the same period last year. Major purchases were seen in Mexico (+25%) and The Netherlands (+300%) and Germany (+159%).

              By category, peanut butter was down 2.88%, in-shells down 57%, and raw kernels were UP 9.72%. Heavy congestion exists in all ports of Europe which affects the supply chain.  China is back in the market with a 15% market share behind Mexico and Canada.  Peanut oil prices are expected to increase after the suspension of sunflower seed and oil from Ukraine and Russia.   

             Argentina is reporting more frosts slowing the maturity of the peanut kernels.   Argentina is also noting a great concern that is developing into a severe situation…a serious lack of gasoil for harvesting equipment and severe restrictions due to roadblocks.  The EU continues to favor Argentina peanuts due to low or non-existent aflatoxin.

            Markets may be quiet at planting time, however, an estimated 50 percent of the peanuts have not been contracted with shellers.  There is a day coming that shellers and farmers have to agree on some price or divert to loan and wait longer.  There are many unknow issues that could influence the market such as inflation, cost of inputs, a labor shortage, a food shortage and the Farm Bill.  Stay informed, this quiet market could turn to chaos.                             


2022 Est. Peanut Acreage (-1%)                 1,449,000 acres

2022 Est. Peanut Production( ?)

2022 Market Loan 5-3-2022                           2,568,453 tons

2022 Redeemed/sold 5-3, 2022                     1,352,569 tons

2021-22 Domestic Usage (8 Mo.)                   UP +.6 %

2021-22 Exports (Jan-Mar) (2 Mo)              DOWN – 18.25 %

Posted Price (05-4-2022) Runners -$424.89 ton, Spanish - $413.95 ton. Valencia and Virginias - $427.70