Peanuts: nothing but a fig leaf
October 16, 2023 at 10:43 AM ,
Der AUDITOR
Market to turn in India
Importers in Vietnam rejected nearly 200 containers as traders report stating quality issues as a reason. Businessmen in India, however, vehemently oppose this claim highlighting that this rather serves as a fig leaf for the embarrassing fact that importers in Vietnam are lacking financial resources. Due to the tremendous recession Vietnam is witnessing most letters of credit are being defaulted with Indian banks not able to release the funds.
This shows which enormous pressure peanuts are under in the export market, although prices have risen in the last few weeks. Competition will also turn fierce as China is expected to raise the bar this season. While average production ranged at 15.5-16.0 million mt in China in the past three years, figures are anticipated to rise to 19.0 million mt. Although China certainly prefers to buy peanut oil in India, exporters have noted that attention has shifted towards Brazil this year. In August, China for instance imported 8,240 mt of peanut oil from Brazil prompting total imports from the country to climb to 20,896 mt from January to August. Imports from India ranged as low as 3,309 mt in August but still range at a much higher 78,890 mt for January to August.
Local markets are, in addition, facing a high inflow of fresh arrivals with demand not up to scratch. The states in southern India also do not require any more seeds for sowing. Prices will certainly undergo some corrections in the next two to three weeks and buying should only be performed intermittently. Bold 40/50 peanuts in 25 kg and 50 kg PP bags are trading at USD 1,560/mt CIF Rotterdam for 40’ FCL. The prices for whole blanched 40/50 peanuts range at 1,850/mt CIF Rotterdam and for blanched splits at USD 1,800/mt CIF Rotterdam.
|
Peanuts, with skin |
|
|
Type |
USD/mt |
|
Bold, 40-50 |
1,545 |
|
Bold, 50-60 |
1,505 |
|
Bold, 60-70 |
1,490 |
|
Java, 50-60 |
1,580 |
|
Java, 60-70 |
1,495 |
|
Java, 70-80 |
1,500 |
|
FOB India, non-EU quality |
|
Negotiations underway in Indonesia
Moreover, it should be noted that importers in Indonesia still need to initiate full-scale purchases from India. Anticipation is that the US dollar may climb to 16,000 IDR, which may impact import prices. Yet, India’s government hopes that exports will witness an upturn soon and exporters have started issuing offers for bold peanuts, which have kicked off negotiations.
|
Peanuts |
|
|
Java |
USD/mt |
|
50-60 |
1,340 |
|
60-70 |
1.315 |
|
80-90 |
1,490 |
|
TJ |
|
|
50-60 |
1,205 |
|
60-70 |
1,195 |
|
80-90 |
1,190 |
|
CIF Indonesia |
|
Delayed US crop smaller than anticipated
The USDA has recently revised the crop projections downwards for this year. At 3,123,730 lbs the crop projection, however, only ranges 38,125 lbs lower than in September. Average yields declined from 3,953 lbs to 3,905 lbs per acre. An accurate assessment of the crop size and quality will only be possible in December as the crop is delayed.
View more
- price chart, peanuts, with skin, 40/50, Bold, India
- price chart peanuts, with skin, 50/60, Java, India
- price charts for nuts, dried fruit, oilseeds and many more products
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