Peanuts: strong production growth in China
July 29, 2020 at 11:54 AM ,
Der AUDITOR
Production in China increases noticeably
In China, there has been a significant increase in production on the peanut market. While production in 2019/2020 is still estimated at about 15.7 million metric tonnes, the INC expects production in 2020/2021 to reach 17.8 million metric tonnes, which is an increase of 13.4%. Last year, exporters and traders often had difficulties in fulfilling their contracts because there were virtually no overstock supplies from the previous year and goods were in short supply. Since mid-March this year, buyers have been trying to replenish their stocks, which has often been made much more difficult by the Covid-19 measures. Prices are at their highest level since the record price in April 2012. However, market players also expect demand to be subdued this summer due to the pandemic. There will be noticeably fewer purchase requests from the catering sector alone.
|
Peanut prices, China |
|
|
Type |
EUR/mt |
|
Blanched, 25/29 |
1,550 |
|
Red Skin, 60/70 |
1,550 |
|
FCA Spain |
|
Festival increases domestic consumption in India
A record summer crop is also expected in India this season, as the area under cultivation has been expanded in both Gujarat and Rajasthan. Contrary to previous expectations of the INC, the current cultivation figures indicate a significant increase over last year. Although some important markets are currently closed due to rising coronavirus infections, domestic demand remains steady due to the Shravan Festival, which is celebrated from the end of July to the end of August. Peanuts are part of the traditional fasting meals there.
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Peanut prices, India, EU quality |
|
|
Type |
USD/mt |
|
Bold, 40-50 |
1,320 |
|
Bold, 50-60 |
1,295 |
|
Bold, 60-70 |
1,280 |
|
Java, 50-60 |
1,505 |
|
Java, 60-70 |
1,465 |
|
Java, 70-80 |
1,445 |
|
FOB India |
|
Uncertainty in the USA, good quality in South America
The USA had some serious quality problems with their 2019 crop and therefore held back strongly on the market. The outlook for the new 2020 crop looks much better, but the country is the one that is hardest hit by the coronavirus pandemic, so much depends on consumer purchasing behavior at present. According to INC data, production for the 2020/2021 season will increase by around 7%.
Good new crops are also expected in South America. In Argentina, the area actually harvested declined slightly, so that production declined by 4.8% to 1.2 million metric tonnes. However, the Argentine Peanut Chamber reports an optimal quality. After Brazil's very poor crop results in the 2018/2019 season, this time production is again at a stable level of 550,000 metric tonnes in the 2019/2020 season and an estimated 540,000 metric tonnes in the coming season. The quality is also convincing, the only difficulty is that a large part of the crop is already under current contracts and therefore little goods will be available on the open market.
|
Peanut production, in-shell, in 1.000 mt |
|||
|
Country |
2019/20 |
2020/21 |
Diff. |
|
China |
15,700 |
17,800 |
13.4% |
|
India |
6,200 |
5,500 |
-11.3% |
|
Nigeria |
3,500 |
3,900 |
11.4% |
|
USA |
2,493 |
2,663 |
6.8% |
|
Argentina |
1,260 |
1,200 |
-4.8% |
|
Senegal |
1,100 |
1,150 |
4.5% |
|
Indonesia |
999 |
970 |
-2.9% |
|
Ghana |
440 |
650 |
47.7% |
|
Brazil |
550 |
540 |
-1.8% |
|
Vietnam |
470 |
447 |
-4.9% |
|
Others |
8,855 |
11,286 |
27.5% |
|
Total |
41,567 |
46,106 |
10.9% |
|
INC Webinar, June 2020 |
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View more information
- price chart, peanuts, with skin, 40/50, Bold, India
- price chart peanuts, with skin, 50/60, Java, India
- more price charts
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