W2 Peanut Update: Brazil Witnesses Steady Prices, India Sees a Decline in Prices, and China Faces Challenges Amid Bumper Crop

Peanut Price Declined in India, Remained Steady in Brazil, and Rebounded in China

In Dec-23, peanut prices in India dropped by 5% month-on-month ( MoM) to USD 0.76 per kilogram (kg) at the start of Jan-23 due to reduced buying interest and abundant supply from the Kharif crop. The price is anticipated to stabilize in early 2024, as the yield falls short of expectations and the Rabi crop suffers under dry conditions. Peanut prices remained steady in Dec-23 in Brazil as a shift towards peanuts from soybeans, particularly in São Paulo, which could result in a rise in cultivation area for 2023/24. Nonetheless, dry conditions offset this, and only a slight increase is expected in production. Chinese peanut prices rebounded early in Jan-24 but are expected to trend sideways as a bumper domestic crop, coupled with weak demand and capped prices.

Peanut Cultivation in Brazil Expected to Increase by 10.41% YoY

Peanut cultivation has become a popular choice for many Brazilian farmers due to its profitability and importance in the international market. Brazil is one of the major exporters of peanuts and peanut oil and has experienced significant growth in peanut production. This expansion is not limited to São Paulo but also to other states, with an estimated 10.41% year-on-year (YoY) increase in planting area across the country for the 2023/24 harvest. However, the irregular rains at the beginning of the harvest have caused some disruptions for producers. In addition, peanut cultivation requires careful management and significant investment, which challenges the local farmers.