Peanut Market Update February 2022 Week 8

There’s some good (and bad) news for those keeping track of the US peanut market. Many states such as Oklahoma and South Carolina are reporting record yields. On the other hand, states like Texas and Georgia which earlier reported floods have now begun reporting their losses.

The total yield has risen to 4% since 2020. Demand is lower than usual but the pandemic has been sited for causing this. It is worth noting that in spite of these conditions, peanut prices continue to be good for above-average quality and farmers have been able to obtain fair rates.

The increase in fertilizer prices is proving to be quite beneficial. Since peanuts only require small amounts of it, farmers have switched from cotton and corn to growing peanuts this year.

Also, do note that European spot prices have declined in recent weeks.

Update on Indian Producers

Consistent domestic demand has helped the Indian peanut market remain stable. Many market players predict that European buyers will begin to look at Indian peanuts more closely due to a number of factors. For one, new regulations regarding aflatoxin and pesticide content which will help imports to Europe. Also, the container issue isn’t as big as it is in some African countries that produce the crop. Experts say that this year’s Indian peanut crop will be much higher compared to recent years.