Peanuts: Disappointing crop in U.S.

January 18, 2017 at 8:44 AM , Der AUDITOR
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ROTTERDAM. It is still quiet on the market for peanuts but it is slowly beginning to stir. Many buyers have been waiting for better prices. In vain?

China
In spite of solid demand from regional oil mills prices for the chinese type Hsuji have given way slightly.
But soon trade will temporarily be over. Starting in the coming week the approaching Chinese New Year will ensure reduced trading activities. Market participants expect prices to rise after the celebrations.

USA
The situation in the US-peanut market reads like a worst-of list. Production has gone down by 400.000 mt to 2,8 Mio. mt. with no carry-over stocks from last year and high Aflatoxin values. The tension in the market is not expected to ease before June and if worst comes to worst not before November this year when the new crop for 2017 will be available. Dealers are also concerned that Chinese buyers could pounce on goods from the U.S. so that a smaller amount of peanuts will be available for the European market.

South America
New supplies from Argentina and Brasil are not expected before spring, however, market participants have reported peanuts from these origins to be on offer in the European common market. Sellers, allegedly, are dealers and processors with too much surplus in stock. 

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