Nuts

Peanuts: false hopes

October 4, 2022 at 9:43 AM, Der AUDITOR
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NEW DELHI. Peanuts are not holding up to expectations in India. Good news, however, is that production is highly promising. Dangerous edible oil mixtures have prompted an alert to be issued.

Dangerous practice

Issue is that many edible oil refiners have been caught red-handed mixing palm fatty acid distillates with glycerine and passing this off as crude oil, which is then mixed with cooking oil to increase profits. This dangerous practice can, however, cause end consumers several health damages. The Solvent Extractor's Association of India has even issued a warning to its members urging them not to become associated with such practices.

Wishful thinking

China has also stepped up buying for peanut oil. Traders state that the country, in fact, purchased five hundred containers of peanut oil with prices ranging at USD 1880-1910/ton in August. Expectation is that similar figures will emerge for September. This has given rise to hopes that peanut prices will also start to rise. India also exports peanut oil to Vietnam, Malaysia and Russia and the Philippines.

Market analysts are, however, not quite convinced the a price hike will emerge. India will, in fact, soon face fierce competition from Senegal, Brazil and Argentina. Production prospects are also highly encouraging as good yields are being reported. Yields in Jaipur, Jodhpur and Bikaner in the state of Rajasthan have, for instance climbed from 16 quintals per acre last year to 17.5 quintals per acre this year and India’s national production is expected to range 10% higher this year. Branded oil companies, in addition, do not require much at present and local spot markets have not observed any price rises so far.

Firm prices

Traders, nevertheless, reckon that the next two weeks will prove decisive for the peanut market. Issue is that China may continue to buy large volumes in India. The festival of Diwali, which is celebrated on 24 October, may also spark additional demand. Prices have, however, remain firm at present.

Peanuts, with skin

Type

USD/mt

Bold, 40-50

1,315

Bold, 50-60

1,280

Bold, 60-70

1,265

Java, 50-60

1,375

Java, 60-70

1,305

Java, 70-80

1,295

FOB India, non-EU quality

 

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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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