The price trend of peanuts and the landscape of peanut market in China

The domestic peanut spot market price continues its strong rising trend. Reviewing the rising peanuts price record at the current stage, three factors have a significant impact.

First, since the escalation of the RUS-UKR conflict occurred, the price of oil crops and agricultural products international market has sharply skyrocketed, which chain affected the Chinese domestic market situation.

Second, the linkage promotion reaction, the oil-pressing factories' purchasing behavior, and the price gap between the spot and futures markets. On the one side, the oil-pressing factories’ acquisition strategy has changed with the price rising of oil meal. The factories constantly raised the purchasing price or relaxed the purchasing endurance standards, and the transaction price has steadily increased. At the same time, the price of the peanut futures market rose, the gap between the spot market and futures market expanded, bringing huge arbitrage space for spot market traders and resulting in the cargo delivery demand soaring.

Third, with the outbreak of the epidemic in Northeast provinces, it can be predicted that in the next half month or so, the production areas in Northeast regions will confront the difficulties on shipment transportation, and the traders will turn to Henan origin production for purchasing, thus stimulating the price continues rising for Henan origin peanuts. So will this peanuts market price rising trend continue? and how long it would last? Let's just keep observing.