Peanut Market Updates March 2022 Week 10

Peanut production around the world is expected to hit 50 million mt this year. This will be a 1.5% decrease compared to last year if this happens. However, the numbers are still impressive. It is interesting to note that China continues to play an integral part in the global peanut market, with their peanut production seeing a 4% increase this year. 

Other major peanut powers, including India, Nigeria, and the US, have also seen a subdued increase in production this season. A point of interest in the case of India is that the area used for peanut production has decreased by 3%. However, they have managed to increase their output by 0.9%. 

In regards to China, domestic demand has seen a dip, which will put pressure on the Chinese peanut industry, though no signs of any price drop occurring shortly. 

North American Updates

The International Nut & Dried Fruit Council is extremely positive considering the US peanut 

as continued to remain at relative highs considering the domestic US market, stocks are still estimated to be slightly below 3 million mt, considering the demand sag in China. 

Again, as is the case with much of the nut and dried fruit industry, supply chain problems have continued. Domestic shipments have become twice as expensive, and the availability of shipments and port congestions have added pressure on the Peanut market. Prices will remain firm. 

While production has seen a relative increase in some key areas, Argentina has suffered from a spell of drought. The damages are being assessed, though if the weather does not improve, Argentina is expected to see a significant decrease in peanut production compared to last year.