Brazilian Peanut Price Decline Indicate Potential Peak

In early July, Brazilian peanut prices dropped by 2% in São Paulo (to USD 1.70/kg) and 3% in Pernambuco (to USD 1.42/kg) during a two-week period, which could be a signal of an impending peak. Brazilian prices have become uncompetitive in the export market due to continued price increases and quality rejections in Europe. Major peanut-producing countries in the Northern Hemisphere have favorable conditions, causing importers to hold off on purchasing until their domestic crops are harvested. It is expected that Brazilian peanut prices will decrease in the near future to regain competitiveness in exports.