Peanut Market Update July 2022 Week 28

It has been reported that the peanut output in Uttar Pradesh, one of India's leading peanut-growing states, is lower than expected. We are looking at a lower range of 34%, a big shock since high production was expected.

Disease adversely affected yields and some shortages have been reported in local markets. Of course, growers in Uttar Pradesh mainly provide peanuts to other states. Still, global demand has recently picked up in the past few months.

As China continues to import 300 containers of peanut oil in the past two weeks, it is expected that Chinese demand shall remain at this level until the new crops arrive.

Other countries such as Brazil, Argentina and Sudan don't have enough stocks to fill the demand, and so it is expected that India will have leverage over the market for the next few months.

Prices for peanuts have been the same throughout much of June in India. However, this is now changing. Prices rose last week and are expected to do so. Many suppliers are urging customers to buy now as well. We will let you know as the situation progresses.