PEANUT STOCKS AND PROCESSING REPORT– USDA’s Peanut Stocks and Processing Report shows for the month of July 2026, the 12th month of the marketing year, peanut stocks in commercial storage totaled 3.20 billion pounds equivalent farmer stock, compared to 1.56 billion pounds last year, UP 105%.  Total – 2.25 billion pounds of farmer stock, up over 170%.

                Shelled peanuts farmer stock equivalent totaled 892 million pounds, UP 28%, compared to last July.  Roasted stocks were 586 mil lbs., UP 29%.  Total shelled peanut stocks were 671 million pounds, up 27.0%.642 million pounds were edible grades, UP 36.6% compared to July last year. Oil stocks are 28.2 million pounds, UP 15%.  Edible stocks of shelled peanuts by type, Virginia & Valencia stocks are at 129 million pounds, same as last July. Runners were 487 million pounds, UP 25.0% and Spanish totaled 26.1 million lbs., UP 27.9%. 

                 In July, shellers milled 441 million pounds, 13.3 % more than last July.Commercial processors utilized 206 million pounds of shelled edible peanuts, up 6.8from last year. July government purchases were 3.13 million pounds of peanut butter.  For the 12 months, government purchases totaled 26.9 million pounds of peanut butter, about the same as last year. The purchase included 388,800 lbs of roasted peanuts, 77,000 more than last year.

                Raw peanuts in primary products are DOWN 1.6 % Aug-July compared the same 12 mo. of 2025-26.  Peanut butter usage was up, however ,recent numbers shows a drop of 1.6% for the year.   Peanut snacks usage were UP 8.8 last month, but July dropped 17.45 resulting in a – 4.5% for the year.  Peanut candy continues down 2.8% for the year as July was down 4.5%.  In-shells are showing a good market, up 15.7%.  USDA summary said, shelled edible grade utilization is down 2 percent from last year.

BROKER’S VIEW OF U.S. PEANUT MARKET – Sept.1, 2026

                For the first part of the month, there wasn’t tremendous action in the market, regardless of if one looked at the US domestic market or the international market.  The lower supply in many of the major origins is forcing the sellers to move their selling prices up. Buyers, both internationally and in the US, are noticing those issues as well and are finally starting to pay attention. They have started to be more active enquiring about coverage for next year. Demand through the end of the year continues be lackluster.

                The US acres are down an incredible 28% for the new crop. The weather has been drier the last couple of weeks although good rains have been falling in the Southeast the past several days. There is still a long time before this crop gets harvested, thus we need much more rain to ensure good yields and quality.

                Luckily, the 2025 crop carryover is a lot healthier than what was expected many months ago with a record 1.631 million fst carryover, which will help keep sufficient supply for the demand.

                Domestic demand continues to struggle, especially on peanut butter.

December 2027 cotton prices will be the key to the supply and to the 2026 and 2027 crop market prices.  2025 crop prices continue to be low whereby new crop prices have jumped.  Argentina has struggled with the last 20/25% of the crop which will reduce the export supply and the quality of the end of the crop. Look for prices to continue rising.  Argentina new crop plantings are around the corner with expectations of stable acres.

                The Brazilian struggle on prices between farmers and shellers continues. Expectations are for another big reduction in plantings although higher international prices could potentially help. The weather in China has been good lately bringing expectations of a crop output that matches last year’s. Nevertheless, the currency and high freight rates has hampered the ability of the Chinese to be competitive on the export market.

                India has benefited from better rains which has helped plantings to be at par with last year, after being severely behind. The weather through the end of the season will be key to yields and quality.

PEANUT CONTRACTS RETURN

                  Contracts for the 2026 peanut crop had slowed for a while as the industry waits to learn more about the potential production of the US crop.  Farmers had shown little interest in the $400 per ton range offered earlier. This week, buying points have increased the offer to $550 per ton on limited tonnage of runner type at each buying point. 

                  Buying points are also contacting farmers if they have tonnage in the loan.  Farmers do have beneficial interest and can have the loan repaid before the deadline.  Recent offers have been $355 per ton plus $50 or $405 per ton. 

LEADING MARKETING INDICATORS (As of Sept, 2026)

2026 Est. Peanut Acreage  -28%)     1,370,000 acres

2026 Est. Peanut Production  -27% 2,709,000 tons

2026 Est. Average Yield                         3,956 lb/ac

2025-26 Market Loan                                         2,910,863 tons

2025-26 In Loan (9-1-25)                   684,055  tons

2025-26 Loan Redeemed -sold                         2,225,908 tons

2025-26 Domestic Usage (12 Mo.)                     DOWN -1.6%

2025-26 Exports (Aug-Jun) (10Mo)                     UP + 10.4%