1. Weekly News
India
India's Peanut Market Faces Challenges from Heavy Rains and Price Fluctuations
Due to heavy rains and fluctuating prices, India's peanut market is grappling with significant challenges. Traders report that approximately 50% of the peanut crop in the Mainpuri area of Uttar Pradesh has been damaged. Typically an off-season for peanut income, July sees farmers releasing a substantial amount of old stock this year. Crushing mills purchase about 25% to 30% of the summer peanuts. Around 40% to 50% of the summer peanut crop has already reached the market, with the remaining stock being gradually released, reflecting the market's dynamic nature amidst these adversities.
China
China's Peanut Trade in Jun-24
According to the General Administration of Customs Republic of China (GACC), China's peanut imports reached 73.76 thousand metric tons (mt) in Jun-24, marking a 15.24% decrease month-on-month (MoM) but a 25.8% increase year-on-year (YoY). Meanwhile, peanut exports totaled 8.49 thousand mt, showing a 15.2% MoM decrease but a significant 69.9% YoY increase. This data highlights the dynamic nature of China's peanut trade, with notable YoY growth despite monthly fluctuations.
United States
NPB Approves Strategic Initiatives and Changes at Jul-24 Meeting
The United States (US) National Peanut Board (NPB) held its Jul-24 meeting in Savannah, Georgia, where it approved several critical strategic initiatives and structural changes to advance the peanut industry. Key topics included creating an additional at-large board position, approving the fiscal year (FY) 2025 budget and program of work, and shifting to three annual board meetings. These decisions are part of NPB's ongoing efforts to strengthen the industry and ensure its future growth.
Australia
Australia Launches World-First National Program to Treat Peanut Allergies in Babies
Australia starts a world-first national program to treat peanut allergies in babies. This initiative involves select pediatric hospitals supervising eligible babies who receive gradually increasing doses of peanut powder daily for at least two years to reduce their sensitivity. While oral immunotherapy has been available through clinical trials and specialized allergy centers worldwide, this marks the first time it has been adopted as a national model of care for peanut allergies.
2. Weekly Pricing
Weekly Peanut Pricing Important Exporters (USD/kg)
Yearly Change in Peanut Pricing Important Exporters (W31 2023 to W31 2024)
.png)
India
Peanut prices in India declined by 1.39% week-on-week (WoW) to USD 0.71 per kilogram (kg) in W31. However, based on monthly comparison, the prices increased by 1.43% MoM from USD 0.70/kg in W28. Despite the weekly decline due to low market demand, India’s peanut production faces challenges from crop damage and varying market prices. The heavy rains in Jul-24 have damaged 50% of the peanut crop in the Mainpuri area of Uttar Pradesh, negatively impacting the overall supply and market trends in the region. July is generally considered an off-season for peanuts. However, farmers are releasing significant old stock to get sufficient cash flow this year. Gujarat’s Saurashtra region, heavy rains have reduced crushing mills’ peanut purchases, leading to a limited price range and no immediate bullish trend expected.
United States
US peanut prices stood at USD 0.61/kg in W31, marking a 3.39% WoW rise but a 4.69% MoM decrease, suggesting short-term volatility in the market. The United States of Agriculture (USDA) reported a significant increase in acreage across the Southern US, and a 900 thousand pounds (lbs) decrease in marketing of farmer-stock peanuts could indicate future price fluctuations. If increased acreage continues, leading to higher production levels, it may create downward pressure on prices in the coming months as supply potentially outpaces demand.
Brazil
Brazil's peanut prices increased to USD 2.74/kg in W31, marking a 2.74% WoW rise, but they are still down 4.86% MoM from USD 2.88/kg in W28. Prices peaked in Jun-24 due to the Festa Junina but have gradually declined since Jul-24. The country's peanut production in 2024 has been severely impacted by drought, especially in São Paulo, leading to lower crop yields. The extended dry spell during critical growth stages has resulted in smaller peanuts with reduced oil content, affecting both the peanut and oil markets. Analysts predict prices may stabilize by year-end if favorable weather conditions return for the next peanut crop.
3.Actionable Recommendations
Strengthen Resilience Against Weather-Related Disruptions
India's peanut industry faces severe challenges due to heavy rains and fluctuating prices, leading to significant crop damage and market instability. To address this, Indian peanut producers and traders must adopt more resilient agricultural practices, such as improved irrigation systems and better crop management techniques. Additionally, establishing a strategic reserve or insurance scheme could help mitigate the financial impact of such adverse weather events. By taking these steps, India can stabilize its peanut market and reduce the vulnerability of its farmers to unpredictable climatic conditions.
Mitigate Drought Impact Through Strategic Crop Management
Brazil’s peanut industry has been severely affected by drought, leading to reduced crop yields and fluctuating prices. To mitigate these impacts, Brazilian peanut farmers should adopt strategic crop management practices that enhance drought resilience, such as selecting drought-tolerant peanut varieties and optimizing irrigation techniques. Additionally, the government and industry bodies should consider investing in research and development to improve peanut crop resilience and productivity. By implementing these strategies, Brazil can stabilize its peanut production and ensure a more consistent supply, even in adverse weather conditions.
Sources: Tridge, CMB News, Mysteel, Morning AgClips, BBC, ChemAnalyst.News
