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Peanuts: slump in US exports

August 1, 2022 at 10:42 AM , Der AUDITOR
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NEW DELHI/ATLANTA. Farmers are switching to more attractive alternatives such as cotton or soy in India and in the United States. China's peanut production will only rise nominally in 2022/2023 and US suppliers are having a hard time competing with India.

Extortionate freight charges

Global peanut production will range on a similar level as last year according to the International Nut and Dried Fruit Council (INC), the United States Department of Agriculture (USDA) and other sources. The nominal uptick is driven by higher yields rather than an increase in acreage as cotton and soy are presently outpricing peanuts. Although China will remain the world's leading producer, the crop size will only range marginally higher than last year. Freight charges have, however, risen tenfold since the pandemic started, which is slowing down exports and boosting China's domestic consumption. India is expected to continue to increase production in 2022/2023, although many farmers are switching to cotton or soy.

Global peanut production, in-shell basis, in 1,000 mt

Country

2021/22

2022/23

Diff.

China

18,000

18,150

0.8%

India

6,800

7,000

2.9%

Nigeria

4,230

4,500

6.4%

USA

2,898

2,840

-2.0%

Senegal

1,680

1,700

1.2%

Argentina

1,278

1,250

-2.2%

Indonesia

960

950

-1.0%

Brazil

718

750

4.5%

Ghana

422

470

11.4%

Vietnam

400

388

-3.0%

Others

13,212

12,721

-3.7%

Total

50,598

50,719

0.2%

China Chamber of Commerce for Import and Export of Foodstuffs, USDA, Argentine Chamber of Peanuts (CAM) and other INC sources, INC July 2022

India vs USA

While production will rise in India this year, the opposite is the case in the Untited States. As The Peanut Grower reports acreage has declined by 5%, whereas analysts reckon that 10% are more probable. Issue is that many farmers have also switched to cotton and soy here. Summer coupled with a national recall due to salmonella have also put a dent on domestic consumption. Exports also range lower. The USDA reports that the US only shipped 322,679 mt of peanuts overseas in January to March, which is 19% lower than in the same period last year. Mexico is the main export destination, followed by the Netherlands, Japan and UK. Shipments to China have, by contrast, slumped by 60% as US suppliers cannot compete with their colleagues in India.

The USDA reckons that the rise in production will prompt India to step up shipments to China in 2022/2023. Local demand is, however, more centred on oil. As overseas demand has risen prices are up in India at present. Yet, the colour of the new crop is darker than usual in Uttar Pradesh. As this is deterrring international buyers suppliers are mainly selling these nuts in the local markets. 

Peanuts

Type

USD/mt

Bold, 40-50

1,325

Bold, 50-60

1,290

Bold, 60-70

1,275

Java, 50-60

1,390

Java, 60-70

1,320

Java, 70-80

1,310

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
price charts for nuts, dried fruit, oilseeds and many more products

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