Reasons behind increased implanted surface for peanuts in Argentina

In October, the Ministry of Agriculture estimated a sowing area of 380K hectares of peanuts while in November, it added 10K hectares. The Argentine Peanut Chamber estimates that the crop will occupy 385.5K hectares, which is to say 10% above the 351.7K hectares of the last cycle, but below the 2018/2019 season and far from the 2017/2018 record of 440K hectares.

In the case of Córdoba (the province that concentrates 70% of the planting surface and all of the peanut processing facilities), the Córdoba Cereal Exchange put out a more modest estimate: 266,2K hectares, 2.4% above the 260K of last season.

All estimates foresee an increase in the implanted area compared to the previous cycle and puts an end to a two-year run of surface reduction.

The reasons related to the expansion that peanut is having in various areas of the country (Junin in the Province of Buenos Aires, also in Santa Fe and West of Santiago del Estero on the border with Catamarca) are related to good international prices (blanched peanuts are about USD 1800/ton vs a historical USD 1500/ton), poor yields in other producing regions, and the increase of import duties from the EU to the United States (Argentina provides 55% of the EU peanuts while the Unites States holds 14% share).