Peanut Market Update June 2022 Week 23

In the United States, the USDA has reported that plantings stand at 79% as of May 29, 2022. While the country's southeast has received some plentiful rains this week, the same cannot be said for the southwest, which has been completely dry. It is not yet known for sure exactly how many plantings have been done this year, but there is a general consensus that the numbers are down between 5 to 12%. But don't worry: buyers are well-covered, so whatever happens in the next few months, the market is expected to remain at a complete standstill.

In South America, we hear that prices for peanuts have risen slightly in Argentina. However, the yield is still low, not to mention lower quality for the crop of 2022. While land rent increases, it is uncertain what this will mean for the 2023 crop. Prices at the moment are in the mid- US$1400s for raw and mid-US$1500s for blanched. Demand continues to be low, with manufacturers covered through the end of the year. On the other hand, we hear news from Brazil that China has signed an agreement to start importing Brazilian peanuts. Details of the deal are expected to come out at the end of the month, and we will be sure to cover it.

Lastly, it has been reported from China that plantings continue but will be over soon. There has been a notable 5 to 10% decrease in the growing peanut area from uncertain demand. Since China is still experiencing lockdowns, it is unclear how this will affect the demand for peanuts. However, it is worth noting that due to the quarantine situation people in china find themselves in, sales of peanut oil have increased. This will probably go down in the long run. However, it is still quite uncertain with inflationary issues and other economic factors. These may very well end up being the reason behind the demand. We will let you know as the situation progresses.