peanuts

Peanuts Market Had Been Between Steady and Week in 2022 Peanuts Annual Report

Mintec Global
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The new year in peanuts bought a negative trend and traded in the consolidated mode for the entire month. In February, the same trend continued, but as the month’s end approached, the chart recovered and started its northward journey in March and April. However, Peanuts gained stability in May, and a slippery trend was noted in June and remained range-bound with nominal growth in July and August. At the onset of Autumn and October, a minuscule de-growth was recorded, and November was a recovery phase in Peanuts, and by the last week of November, Peanuts prices dropped. The same bearish trend continued in December.

January to April 

The year starting was negative, and to add salt to the injury, Karnataka witnessed severe crop damage with a loss of 8 thousand Cr in 1 million Hectares. The market had mixed opinions, and thus, the same trend continued in Feb as there was limited export demand and domestic farmers were waiting for reasonable selling prices. However, March saw a bull run as farmers sold their produce at high rates and pocketed good returns. In April, the positive pattern continued, and the Russia-Ukraine war resulted in damaging repercussions by limiting the sunflower oil supply. And this affected the peanuts market positively as sudden demand from China supported the market.

May-August

Some domestic factors, such as the government’s minimum support price for the farmers, increased significantly this year, showing positivist in May. However, in June, peanuts fell drastically, and it was because India faced cut-throat competition from Mozambique as its yield as already arrived in the market with a price range from 1,150-1,200$/Ton. And it remained consolidated as there was export demand support from Asian countries like Indonesia, Malaysia, Thailand, Vietnam, and the Philippines. For these countries importing peanuts from India is feasible as there is less transit time. Furthermore, in July, it saw a minor growth due to a shortage of export-quality peanuts. Mass imports of Palm Oil from Indonesia also influenced the rural peanut market, resulting in a positive trend. In August, branded oil companies purchased loose packing from small oil mills in local spot markets, increasing prices. To add the cherry on the cake, the news of rivers drying up in China also assisted the peanuts as there were hopes of sudden demand arising from China.

September-December

The hopes of rising vanished as the onset of autumn were disastrous for peanuts. The market trend was slippery, and the main reason was China not being active in importing goods from India, and the farmers had moved on to cultivate soybean and cotton in the Kharif Season. In October, the peanut market remained in turmoil as there was no significant demand for groundnuts, even during the Diwali season. The decreased palm oil prices also added to the sluggishness. And lastly, the moisture content was high in the arrivals during the Kharif season. However, November was the recovery phase, and two new varieties of peanuts were developed, namely Spanish and Virginia Species in India. The end of the year saw stagnancy, and the market was clearly polarized between the affluent farmers and the stockiest. The farmers were unwilling to sell, and the stockiest gathered their stocks with incredible vigor, hoping for better returns in the future.

Thus, the overall growth rate of Peanuts from the beginning of the year to the end is approximately 5%. To conclude, market veterans opine that peanuts will prove to be a gold commodity as China is expected to import from India, and peanuts yield is likely to decrease in Argentina by 30% due to extreme heat.

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