Groundnut crop in Gujarat is less than expected in the current year. Most of the peanut stock is on hold as the stockist has been active since the onset of the season. In other states, the arrival of groundnut has also decreased earlier than expected. Further, there are speculations of a 20 to 40% reduction in groundnut crops in China.
Massive shortage of bold variety
70% of groundnut arrivals are complete in Rajasthan, and there is a massive shortage of bold variety. The arrival of groundnut has reduced entirely due to the start of procurement by the stockists. Most groundnuts arriving in the domestic shops of Rajasthan are currently being used for crushing as poor quality arrivals are prominent.
The demand for groundnut oil and seeds is currently in deficit due to the onset of China’s Christmas and New Year holidays. Due to very high prices in the local market and the impact of the Christmas holidays, groundnut oil has not been traded with China for the last two weeks. Presently, Indian exporters are offering to sell groundnut oil at $1850 per ton, but Chinese buyers do not want to buy groundnut oil at this price.
Argentina to reduce cultivation by 5%
After the Christmas holidays, the shopping for Lunar New Year will begin in January. On the other hand, peanut sowing is reported to decrease by 5% as Argentina experiences drought-like conditions to support the market. Thus, an eagle view by experts suggests that there is a possibility of a boost in groundnut in the coming days. Two supporting factors are the demand for China’s new year in January and decrement in the sowing of peanuts in Argentina.
The Peanuts bold 40-50 prices were recorded at $1,28 per kg FOB.