Nuts

Peanuts: strong production growth in China

July 29, 2020 11:54 AM, Der AUDITOR
Play report as audio

BEIJING/NEW DELHI. Very good crop results are expected in both China and India in the coming season. The quality of the South American peanuts is also impressive.

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.

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

View more information
price chart, peanuts, with skin, 40/50, Bold, India
price chart peanuts, with skin, 50/60, Java, India
more price charts

Categories:

View related articles

Go to the News Overview
Nuts
Aug 11, 2022
ORDU. The Turkish Ministry of Agriculture and Forestry has announced the production estimates for the new season, which have been eagerly awaited by market players. These are promising, as is the quality of the nuts.
Oilseeds
Aug 11, 2022
NEW DELHI/ISLAMABAD. Indian traders see Pakistan as the biggest competitor this season as the crop there is expected to be 40% higher than last year. The palm oil market continues to put pressure on prices.
Oilseeds
Aug 10, 2022
BUDAPEST/CHRUDIM. While crop estimates in the Czech Republic have improved slightly compared to earlier forecasts, the mood on the Hungarian blue poppy seed market has reached zero. Meanwhile, the new EU regulation is causing concern among market players in all growing countries.
Nuts
Aug 10, 2022
HANOI. The original plan of the Vietnamese cashew industry was to export cashews worth USD 3.8 billion in 2022. However, various difficulties mean that this export target is now to be revised downwards.