Free of charge

Peanuts: traders in India hope for shift in demand

November 2, 2021 at 9:30 AM , Der AUDITOR
Play report as audio

ATLANTA/NEW DELHI. The shipping crisis presents an unprecedented challenge for US peanut suppliers. Although export demand is high, suppliers are having difficulties meeting contracts. Overseas demand has, by contrast, declined in India this year.

Higher yields

Adverse weather conditions have impacted production in the US this year. According to PeanutGrower farmers, however, profitted from fierce sheller competition, which drove up prices. The USDA presently estimates US peanut production at 3.174 million US tons ( 2.879 million mt), which is 3.5% up on last year. Although harvested acres have declined by 5.1% on last year to 1.533 million acres, average yields range 9.1% higher at 4.141 lbs/acre (1.88 mt/acre). Producers are happy with the quality of this year's crop.

Lack of ships and containers

US peanut usage has dropped by 5.3% and peanut butter consumption is even 9.6% down. Problem is that many employees have returned to the office. Labour shortages and supply chain issues are also not exactly helping matters along as PeanutGrower reports. The USDA anticipates a 1.2% decline in US exports to 700,000 US tons (c. 635,029 mt) this season. Market players are, however, more sceptical as the pandemic has prompted a unprecedented transportation crisis with ships and containers lacking. Demand in China is also very much subdued. Yet, the US holds one adavantage, which is that no ships are needed to transport peanuts to Canada and Mexico, where sales of raw-shelled peanuts rose by 20% in July.

Lower prices in India

Production in Gujarat, which is a production hotspot for peanuts in India, should range at 3.858-4.078 million US tons (3.5-3.7 million mt) this year. Traders reckon that prices will continue to fall, especially since demand is very much limited in China since the country is well-supplied. Buyers in China have also switched to Sudan at present. This may, however, change again since transportation has reportedly become an issue here. Market players in India, nevertheless, reckon that exports will range lower this season. India shipped 330,693 US tons (300,000 mt) of peanuts and 272,271 US tons (247,000 mt) of penaut oil overseas last year. Prices have tumbled in recent weeks.

Peanuts

Type

Price

Blanched, 38/42, Argentina/Brazil, FCA Spain

EUR/kg 1.55

Runner, blanched, Splits Grade 1, Argentina, FCA Spain

EUR/kg 1.52

Bold, 40/50, non-EU quality, FOB India

USD/kg 1.18

Bold, 50/60, non-EU quality, FOB India

USD/kg 1.16

Trade sources

 

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

Categories:

View related articles

Go to the News Overview
Nuts
Jul 16, 2025
DALIAN/SACRAMENTO. Indian importers would rather pay punitive fees than high customs duties on US walnuts and are waiting for the trade agreement to be approved. As was the case last year, labour shortages in the Chinese province of Yunnan could jeopardise the walnut harvest.
Nuts
Jul 16, 2025
FRESNO. Under current conditions, the US can expect a record pistachio crop this season. The situation for exports is less positive, with a significant year-on-year decline.
Oilseeds
Jul 16, 2025
SOFIA/WASHINGTON, D.C. The weather in Bulgaria is expected to remain hot and dry for the time being. According to data from the USDA, sunflower seed crops in Russia and Moldova are higher than expected. At the same time, the forecast for Ukraine has been revised downwards.
Nuts
Jul 16, 2025
MANILA. Unlike on the Philippine domestic market, export prices for desiccated coconuts remain stable thanks to strong demand. The situation is similar for coconut oil, and copra prices are even trending upwards.