by Nate Wooley | October 26, 2012 8:41 am
Peanut butter is a staple of the American diet. Unless you’re allergic, you’ve likely had hundreds of peanut butter sandwiches between school, work, summers, wherever.
And there’s good news for all those peanut butter lovers: There’s a bumper crop of peanuts this year. Unlike the drought that’s hammering crops in the rest of the country, American peanut farmers are seeing their yields increase by two-thirds or more, according to the Associated Press. Between the good weather and high production American farmers are expected to produce 3 million tons of peanuts this year.
That means a bigger supply and likely lower prices for peanut butter and other peanut-based products in 2013.
Last year’s disastrous crop forced higher prices on foods like Kraft Foods‘ (NASDAQ:KRFT) Planters peanuts and J.M. Smucker‘s (NYSE:SJM) Jif peanut butter.
It’s expected that 2012’s good year will bring prices down through oversupply, though how much prices will fall are an unknown for now.
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