Peanut Market Update January 2022 Week 2

The Chinese peanut market, like most other industries at the moment, is quite stagnant. There is a lack of demand for peanuts right now, so major peanut oil crushers have lowered their purchasing prices several times and set even stricter standards.

The current prices for kernels of different grades are between USD 1500 and 1600 on FOB Qingdao basis. Many farmers are hesitant to sell their stocks.

But it is expected that the volume in the current market will increase soon. After all, both farmers and traders will have to sell their stocks to celebrate the Chinese New Year.

Right now, they’re preparing for the harvest of the new crop.

Low prices for local peanuts has had a big impact on imported goods as well. The price for grade 1 Sudanese peanuts has gone to around USD 1150, and the availability is scarce. Similarly, since the export duty in Senegal is cancelled, the quantity of these peanut varieties will be limited in China as well.

Low prices often help to stimulate demand, but this seems to have no effect on the EU market, whose demand for Chinese peanuts is at the lower end compared to previous crop years.

Of course, there’s an explanation behind it: sea freight costs. The freight rates have gone up once more and are reaching historically high levels once more.

For example, the price for a 20’ft dry container is between USD 8000 and 8500,  and for a 40’ft HQ, the price is around USD 13500 to 14000. 

As you can imagine, such prices, coupled with the fact that many vessels departing from China have been cancelled or delayed, are causing quite a hassle. Hopefully, prices will decrease by March or April. We will update you as the situation progresses.