Peanut Market Update April 2022 Week 15

Since March, Brazil has been shipping its new 2022 crop. It has been reported that the quality is good, and the yield is 15 to 20% more than the previous year. However, as you know, the Russia-Ukraine war has flipped the market on its head. Since Brazil exports over 50% of its crops to these countries, due to the ban, there are several shipments afloat and blocked in several European ports.

Market prices have dropped significantly from Brazil's end as well for both edible stuff and bird feed. The reason behind this is due to the lack of small sizes like 60/70, forcing the bird feed market to be more open to larger sized kernels.

Recently, rumours have emerged about an agreement between China and Brazil, wherein China would import Brazilian peanuts. Due to this, Brazil has changed its position around birdfeed peanuts and increased prices once more.

On Argentina's end, we've seen much dry weather. It is reported that rain is needed in certain areas in particular, or there will be issues due to the dry season. As of now, the crop looks fine, but we will have to wait about 1 to 3 months to see for sure. There has generally been a low demand for Argentinian peanuts. There remain several offers for the current leftover crop.

Over in the United States, the market has been quite stable in the previous half-year without any major price fluctuations. There is an increase of 16.5% in the total crop, compared to 2020.

It's been reported in China that peanut prices have decreased in the past 2 to 3 months. However, high freight prices remain a constant. About two weeks ago, there was an increase in kernel prices due to the demand from oil crushers, but generally, there's been a weak demand from the European Union for Chinese peanuts.