Groundnuts Are Likely to Remain Consolidated as Arrivals Increase

Mintec Global
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After rising since the beginning of the season in groundnut and groundnut seeds, profit booking at higher levels is expected to remain range bound, and the demand for Ramadan will keep the charts active.

High prices, decreasing consumption

According to the traders, in the southern states of Andhra Pradesh, Telangana, and Karnataka, the crop of new winter groundnut has increased compared to last year. Due to a 20% increase in the price of groundnut since the onset of the season till now, the demand is also decreasing at higher prices.

Consumption has decreased due to the high cost of all the groundnut varieties, and after the earthquake in Turkey and Syria, the demand from these countries has affected the ground market as it is decreased in the past two days.

Further, before the Chinese New Year holiday, there was a lot of trade in groundnut oil per ton from $1850 to $1890, but due to the higher price after the Lunar New Year holiday, the trading of groundnut oil in China lost its momentum.

Looking at the current market condition of groundnut seeds, Jawa and TJ varieties may see a minuscule change. And according to the sources, in April-May, there may be a boom in demand for seeds in bold variety. Till then, the price of bold variety will remain rangebound.

Demand for Ramadan

Due to the demand for Ramadan in groundnut seeds, which will last for one month now, there is no possibility of recession from the current prices. With the festival of Ramadan starting on March 22, demand will be visible from Indonesia, Malaysia, and Gulf countries. Thus, market analysts predict that the market for groundnut will remain rangebound as there is no possibility of recession from current prices.

The peanuts bold 40-50 prices were recorded at $1,39 per kg FOB.

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