Peanuts: traders in India hope for shift in demand
November 2, 2021 at 9:30 AM ,
Der AUDITOR
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.
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Peanuts |
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Type |
Price |
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Blanched, 38/42, Argentina/Brazil, FCA Spain |
EUR/kg 1.55 |
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Runner, blanched, Splits Grade 1, Argentina, FCA Spain |
EUR/kg 1.52 |
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Bold, 40/50, non-EU quality, FOB India |
USD/kg 1.18 |
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Bold, 50/60, non-EU quality, FOB India |
USD/kg 1.16 |
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Trade sources |
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