Shelled, raw peanuts were placed in storage approximating commercial conditions at 6.2–6.3% and 8.7–9.2% moisture contents during a two year period. The 1978 storage period was from December, 1978 through August, 1979. The 1979 period was from October, 1979 through March, 1980. The moisture condition 8.7% for 1978 and 9.2% for 1979 showed significant differences in free amino acids and free sugars when compared to the 6% treatment. This suggests that 9% moisture content allows increased hydrolysis of complex constituents and significant deterioration of quality to occur. Peanuts with 9% moisture contents produced darker peanut butter with reduced flavor quality than those with 6%. Hunter reflectance values indicated that the skins of raw peanuts with higher moisture content were also darker. Evaluation of the lipid fractions suggested that only the phospholipid fraction from the 9% moisture treatment was significantly changed. Since phospholipids are primarily associated with the membrance portions of plant cells this change suggests that a breakdown in cellular compartmentation may be occurring. Iodine values and oxidative stability values were not significantly affected and approximated values already published in the literature for stored peanuts.