Global Peanut Market Update: Stability, Growth, and What Buyers Need to Know

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24Feb

Global Peanut Market Update: Stability, Growth, and What Buyers Need to Know

The peanut market has been through some turbulence in recent months, but we’re finally seeing a much-needed period of stability. With India’s prices leveling off, Argentina navigating weather challenges, and the U.S. expecting a production boost, there’s a lot happening behind the scenes. If you’re sourcing peanuts for the spice or food industry, here’s what you need to know about supply, pricing, and what’s ahead.

India: Prices Find Their Footing

For months, Indian peanut suppliers have been dealing with price swings, making it difficult for buyers to predict costs. Now, after a period of decline, prices have stabilized. This is largely due to increased government procurement, which has helped bring some balance back to the market. The result? More predictable pricing for buyers, though competition remains strong.

Another factor influencing India’s peanut market is its recent tariff policy. In September 2024, India raised import taxes on edible oils by 20 percentage points. Since peanuts are a key player in the edible oil industry, any shift in demand for peanut oil could indirectly impact availability and pricing of whole peanuts. While it’s too early to tell how this will play out, it’s something to watch.

Argentina: Weather and Exports in Focus

Argentina remains a top supplier for high-quality peanuts, but this year’s crop is facing some challenges. The country expanded its peanut planting area to 450,000 hectares for the 2024/2025 season, with an expected production of around 1.4 million metric tons. While that sounds like a solid figure, it’s actually a slight decrease in yield compared to previous seasons.

Weather is playing a major role in this. Variable conditions, especially rainfall patterns, have made this season less predictable. Despite this, Argentina’s peanut industry remains strong, and its well-developed processing and export infrastructure ensure that quality remains a priority. If you rely on Argentine peanuts, expect consistent supply, but keep an eye on potential weather-related disruptions.

United States: More Peanuts, Steady Prices

Here in the U.S., peanut production is on the rise. The 2024 harvest is forecasted at 2.95 million metric tons—an increase of nearly 11% compared to last year. Georgia, the country’s largest peanut producer, has faced some weather challenges, including hurricanes, but overall production remains strong.

Despite this increase in supply, prices are expected to hold steady. The average price for the 2024/2025 marketing year is projected to be around $530 per ton. One of the key reasons for this stability is the consistently low ending stocks in the U.S. peanut market. With demand staying strong and reserves not building up, buyers can expect a relatively predictable pricing environment in the near term.

What This Means for Buyers

For those sourcing peanuts in the spice industry, the current market conditions present both opportunities and considerations:

  • Pricing Stability: With India’s prices leveling off and U.S. prices expected to remain steady, this is a good time to plan purchases without the fear of major cost swings.
  • Argentina’s Supply: While Argentina remains a reliable supplier, keep an eye on weather developments that could impact yields.
  • Policy Changes: Trade policies in India and the U.S. could impact availability and cost, especially for processed peanut products.

Overall, the peanut market is in a much better place than it was just a few months ago. For buyers in the spice industry, this is the time to secure supply and take advantage of the stability before any new market shifts occur.

Sources:

  • IndexBox. (2025). U.S. Peanut Market Forecast 2024-2035. Retrieved from https://www.indexbox.io
  • Reuters. (2024). India Raises Import Tax on Edible Oils. Retrieved from https://www.reuters.com
  • USDA Foreign Agricultural Service. (2024). Argentina Peanut Production Report. Retrieved from https://ipad.fas.usda.gov
  • Southern Ag Today. (2024). Peanut Stocks Expected to Remain Low. Retrieved from https://southernagtoday.org

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