Nipples.

I am 34 weeks and my nipples itch all the time. Matter of fact my whole breast itch. Well I was rubbing them and looked down and noticed I have scabs on my nipple and I don't know where it came from. I don't scratch them. Is this normal and they seem to be pealing. Why is that?

It could be the fact your breast are growing and changing causing the itch. The scab sounds like dried colostrum.

Mine did it with both my pregnancies i thought it was weird too but they healed up in a few days and it had no effect with my milk supply

I had brown crust on mine while i was pregnant. Alot of things will happen to them and it's normal.

Could also be thrush. Look it up and see if your symptoms fit. You can buy probiotic powder, mix some with a tiny bit of water and put the paste on your nipples a couple times a day, should clear it up. And even if it's not thrush, it won't hurt and could help. It probably is just normal pregnancy stuff like PP's said.