Since the last two days, China has been slowly easing its corona restrictions, and thus the markets are expected to open shortly. Due to the lockdown and other controls, China’s demand for groundnut oil and seeds has been prolonged for the last few days. The lockdown situation will subside gradually.
Stable Market
The market for groundnut and groundnut seeds has been very stable for the last 3 weeks. Due to simultaneous shipment at the beginning of November and a delay in payment from abroad, the market is currently facing a massive economic crisis.
Currently, China’s offer of groundnut oil is from $1855 to $ 1860 per ton. Buying by regular buyers from Vietnam is good, but bulk buying has been closed for the last 5-6 days, and no one is ready to trade at lower prices due to an increase in disparity.
30% reduction in the groundnut crop in China
So far, 40 thousand tonnes of groundnut oil has been exported from India to China. Due to the 30% reduction in the groundnut crop in China, the demand for China’s groundnut oil and groundnut seeds will continue. There is an assumption that there will be a trade of 4000 to 5000 tonnes of groundnut oil.
Sowing of summer groundnut will start in the month of January-February. Generally, due to more sowing of Java variety in the summer, its demand will begin in January.
The stockists have a strong hold on varieties other than Java and have sold groundnuts to the farmers who needed them. Due to the stock availability in the hands of substantial farmers, groundnut sales are expected to remain low in the coming days.
The Peanuts bold 40-50 prices were recorded at $1,28 per kg FOB.