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Peanuts: High prices and new arrivals

March 5, 2019 at 8:46 AM , Der AUDITOR
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NEW DELHI. Although the new crop has already arrived in India, the market situation is hardly improving. Market observers expect production to decline by around 30%.

 

Production slump in India

According to the US Department of Agriculture, in shell production is expected to drop to 4.7 million mt in 2018/19, a decline of almost 30% over last season (6.65 million mt). The Hamburg analyst firm Oil World estimates production in India (without shell) at 3.9 million mt in 2018/19, a decline of only 17% over last season (4.7 million mt).

Javas comparatively expensive

The first new crop arrivals are relatively high this year, which is why many local processors and oil producers are mainly interested in last year’s carry-overs.

With the arrival of the new crop, the prices for bold peanuts may have become more stable in India but have nevertheless increased again last week. The prices for Java peanuts have risen continuously. Exporters have raised their prices by up to 100 USD/mt FOB over the last five weeks.

Ramadan has pushed up demand for the time being in India. A decline is, however, expected next week.

Peanut prices, India

Sorte

USD/mt

Bold, 40-50

935

Bold, 50-60

915

Bold, 60-70

910

Java, 50-60

1,055

Java, 60-70

1,040

Java, 70-80

1,025

FOB India

 

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