Nuts

Peanuts: dent in global production

March 14, 2022 11:13 AM, Der AUDITOR
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REUS/NEW DELHI. According to the International Nut and Dried Fruit Council (INC) global peanut production declined nominally in 2021/2022. China remains the most important producer. Production has even risen here.

Lower demand in China

The INC estimates global production at 50 million mt, which is a nominal 1.5% decline on the 51 million mt produced in 2020/2021. Total available supplies have also declined as the season started off with lower carry-over stocks. Production in China has climbed by 4.0% to 18.2 million mt, in India by 0.9% to 6.76 million mt and in Nigeria by 9.1% to 4.80 million mt. US production also saw a 4.2% rise. In China the pressure is on as domestic demand has declined, whereas imports were stepped up last year. Large volumes have been turned into peanut oil. China imported 983,000 mt of peanut kernels between January and November 2021 and prices are not expected to decline anytime soon. Although the area sown declined by 3% in India, high yields prompted the rise in production. Gujarat accounts for as much as 37% of the country's production.

In addition, the INC anticipates a very good US production in terms of volume and quality. Although domestic demand continues to be high, remaining stocks are estimated at just below 3 million mt due to the decline in demand in China. Prices are, nevertheless, expected to remain firm as freight charges have surged. Charges for domestic shipments have even doubled. Port congestions and a lack of truck drivers are also not exactly helping to improve the situation. Argentina witnessed unusually dry and warm weather in January and drought-related damages still have to be assessed in Cordoba, the country's production hub for peanuts. Much depends on how much rain will fall in March. The INC also estimates the area sown at 395,000 ha, which is a 4% decline on last year and production is expected to range 3.7% lower than last year.

Inshell peanut production, 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

4,400

4,800

9.1%

USA

2,782

2,898

4.2%

Senegal

1,600

1,700

6.3%

Argentina

1,350

1,300

-3.7%

Indonesia

970

960

-1.0%

Brazil

640

700

9.4%

Ghana

450

450

0.0%

Vietnam

413

400

-3.1%

Côte d‘Ivoire

210

210

0.0%

Nicaragua

180

205

13.9%

Mexico

102

92

-9.8%

South Africa

80

80

0.0%

Others

12,960

11,270

-13.0%

Total

50,776

50,010

-1.5%

INC, February 2022

Prices surge in India

As traders in India report prices surged last week mainly driven by concerns over the war in Ukraine. The market has now, however, stabilised and bold peanuts, size 40-50, are trading at USD 1,250/mt FOB India.

Peanuts, India, non-EU quality

Type

USD/mt

Bold, 40-50

1,250

Bold, 50-60

1,215

Bold, 60-70

1,195

Java, 50-60

1,450

Java, 60-70

1,380

Java, 70-80

1,370

FOB India

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price chart, peanuts, with skin, 40/50, Bold, India
price chart peanuts, with skin, 50/60, Java, India
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