World Peanut Market Outlook and Situation in May-June 2023
As we move into June 2023, the world peanut market outlook for high-quality (EU specs) peanuts is still showing a shortfall of around 200,000 MT of edible peanuts. This shortage is due to reduced supply from Argentina, which is expected to yield fewer jumbos, smaller kernels, and fewer splits, leading to an increase in prices due to unsatisfied demand.
Let's take a closer look at the situation in each of the major peanut-producing regions, including India.
Argentina:
The peanut crop in Argentina is still experiencing reduced yields and production, with exports expected to decrease significantly. The orientative price for the new 2023 peanut crop from Argentina is nominally at USD/MT. 2100 C&F EMP for the Standard BLANCHED Runner 40/50 (Medium), with shipment in July-August 2023 under EU quality specifications. The production reduction in Argentina means that there is a significant shortfall of high-quality peanuts in the market, leading to increased prices.
Brazil:
Shippers in Brazil are still facing challenges in finding EU specs peanuts for Europe due to pesticides and aflatoxin. The orientative prices for the new 2023 peanut crop from Brazil are USD/MT. 2050 C&FE for the Standard BLANCHED Runner 40/50 (Medium) and USD/MT. 2100 C&F EMP for the Standard BLANCHED Runner 38/42 (Jumbo), with shipment in July-August 2023 under EU quality specifications.
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United States:
The US origin remains a reliable option for Europe, with its 2022 crop having excellent quality in terms of aflatoxin, and there should be a substantial volume available for shipment through December. The orientative prices for the new 2023 peanut crop from the US are between USD/MT. 2050-2100 C&E for the Standard BLANCHED Runner 40/50 (Medium), with shipment in July-August 2023 and onwards under EU quality specifications.
India:
India is emerging as an alternative source for high-quality peanuts, especially for buyers in Europe. The orientative price for the new 2023 peanut crop from India is USD/MT. 1800-1900 FOB Indian port for the Standard BLANCHED Runner 40/50 (Medium), with shipment in July-August 2023 under EU quality specifications. Indian peanuts are known for their good flavor and are grown using organic methods, making them an attractive option for buyers looking for sustainable and high-quality peanuts.
Overall, the shortage of high-quality peanuts is expected to lead to an increase in prices in the coming months. However, buyers now have an alternative source in India, which is emerging as a reliable source of high-quality peanuts. The situation in Argentina is still concerning, with reduced yields and production expected to significantly impact exports. Brazilian shippers are still facing challenges due to aflatoxin and pesticides, making the US and India attractive alternatives for buyers.
In conclusion, the world peanut market outlook and situation in June 2023 is still showing a shortage of high-quality peanuts due to reduced supply from Argentina. While prices are expected to increase, buyers can now look to India as an alternative source of high-quality peanuts, along with the United States. We will continue to monitor the market and provide updates as the situation evolves.