China has recently purchased peanut oil from India, and it is likely with the improvement in trade, the price of peanut and peanut oil is expected to improve.
Current Scenario
India has sold 2050 tonnes of peanut oil to China at $2150 per container. India shipped 3000 containers in the last one and a half weeks.
Currently, the price of peanut oil in the market is about $2,10 per kg, with limited demand. But, China’s interest in purchasing peanut oil from India can change the market trend towards bullish.
China will likely put its subsequent demand for the commodity soon to India. The main three countries, Argentina, Brazil, and Sudan, which supply the oil, do not have enough stock to fulfill China’s demand. The limited stock of oil in Brazil and Argentina has also resulted in the increased price of the commodity.
There is high demand for oil in China because it still has four months before the new crop arrives in the market.
The summer crop of peanuts in Saurashtra is comparatively low than expected. However, Uttar Pradesh has increased its production significantly. Therefore, according to experts, it can pressure the market as the new crop arrives. But if the crop quality is inferior, the peanuts will be sold for crushing, which can eventually pressure the peanut oil price.
Future
As of now, with the demand from China, peanut oil and peanut price will increase, but the future price depends on the quality of the crop.
The Peanuts bold 40-50 prices were Recorded at $1,29 per kg FOB