Nuts

Peanuts: China remains top producer

November 17, 2021 2:23 PM, Der AUDITOR
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REUS/BEIJING. In its latest estimates, the INC shows that global peanut production increased slightly in the 2021/22 season. China remains the undisputed leader.

China is the most important production country

Even though the International Nut and Dried Fruit Council (INC) has increased its estimates for Chinese peanut production compared to July to 18.2 million mt, market players still expect crop losses. The reason is the record rainfall in summer, especially in Henan province. The USDA reckons that about 120,000 ha of peanuts were affected there, so that production in this province could be 100,000 mt smaller than hoped. Nevertheless, China remains by far the most important peanut producing country - India, which ranks second, produces only slightly more than a third of China's quantity.

India's production remains stable

In India, according to USDA estimates, peanut production remains almost at last year's level, reaching 6.76 million mt, only a slight increase of 0.9%. The increase is due to a larger area under cultivation. According to the INC, the harvested area will be about 5.9 million ha, 2% less than in 2020. A yield of 1.15 mt/ha, 3% above last year's average, nevertheless ensures a larger crop.

Peanut production, inshell, in 1,000 mt

Country

2020/21

2021/22

Diff.

China

17,500

18,200

4.0%

India

6,700

6,760

0.9%

Nigeria

4,450

4,800

7.9%

USA

2,782

2,850

2.4%

Senegal

1,800

1,700

-5.6%

Argentina

1,528

1,300

-14.9%

Indonesia

970

960

-1.0%

Brazil

640

700

9.4%

Ghana

450

450

0.0%

Vietnam

413

400

-3.1%

Ivory Coast

210

210

0.0%

Nicaragua

180

205

13.9%

Mexico

102

92

-9.8%

South Africa

80

80

0.0%

Others

11,810

11,790

-0.2%

Total

49,615

50,497

1.8%

Quelle: INC, November 2021

USA convinces with good quality

According to the USDA's October estimates, US peanut production for the 2021/22 season is 2.85 million mt; the United States ranks fourth among the world's major producing countries. The country thus increases its production by 2.4% year-on-year. In addition to the higher quantity, growers also expect the quality of the nuts to be good. Although there should be sufficient goods available, the INC does not expect prices to drop noticeably. On the one hand, domestic demand in particular has increased significantly, and on the other hand, the costs for labour, transport, packaging and energy have risen sharply.

Senegal reduces acreage

Last year, Senegal had a record production of 1.8 million mt. This year, the USDA's estimated production of 1.7 million mt is 6% lower, but this is hardly surprising as the area under cultivation has been reduced by 25,000 ha or 2%. In addition, sowing had to be postponed in many growing areas due to heavy rains in July. The INC estimates a yield of 1.4 mt, 3% lower than in the 2020/21 season.

Argentina's production drops significantly

In Argentina, the INC expects a significant drop in production of almost 15% this year. This is based on data from the Argentine Chamber of Peanuts, according to which the acreage is 412,365 ha and the yield 3.7 mt/ha. The INC production estimates are thus 1.3 million mt.

Prices on the European spot market have risen slightly in recent weeks and are now just under EUR 1.60/kg FCA Spain for blanched peanuts, 38/42, origin Argentina/Brazil.

Peanuts

Type, origin

Preis

Blanched, 38/42, Argentina/Brazil, FCA Spain

1.60 EUR/kg

Runner, blanched, Splits Grade 1, Argentina, FCA Spain

1.55 EUR/kg

Bold, 40/50, non-EU quality, FOB India

1.20 USD/kg

Bold, 50/60, non-EU quality, FOB India

1.17 USD/kg

Trade sources

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price chart, peanuts, with skin, 40/50, Bold, India
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