Weekly Product Updates

W44: Peanut Update

Raw Peanut
Market & Price Trends
Peanut Kernel
Published Nov 10, 2023

In W44 in the peanut landscape, peanut harvests in the Northern Hemisphere have commenced, but late rains caused delays in various production areas. Peanut prices remained steady in India, with early-planted crops affected by adverse weather, while late-planted crops are forecasted to yield higher. Brazil experienced a 10% price increase due to strong export demand, especially from Russia, although prices may stabilize or decrease as Northern Hemisphere harvests progress. In China, heavy rains during harvest and increased holiday demand led to a 16% price surge, but this spike might be temporary as post-holiday market dynamics and ongoing harvest impact prices.

A crop survey for the Kharif 2023 season, conducted by the Indian Oilseeds and Produce Export Promotion Council (IOPEPC), estimated India's peanut coverage at 4.39 million hectares (ha), with a production of 6.85 million metric tons (mmt) and an average yield of 1.56 thousand kilograms (kg) per ha. These figures are lower than the Agriculture Ministry's recent first advance estimates, which projected a production of 7.83 mmt, approximately 8.5% less than the previous year's final estimates of 8.56 mmt. The survey covered seven key peanut-producing states in India, with Gujarat leading the production, contributing 48% of the national total, followed by Rajasthan, Madhya Pradesh, and others.

Furthermore, the ongoing drought in Alabama, United States (US), affected peanut farmers and their yields in 2023. Alabama is the third highest-producing peanut state in the country, but the lack of rain has led to a smaller harvest than usual, with expected yields dropping to around 2.9 thousand to 3 thousand pounds (lb) per acre, compared to 3.4 thousand lb/acre. The drought has also impacted other crops in the state, including cotton.

Lastly, a group of 60 peanut producers in Las Conchas, Puerto Peñasco, Mexico, has requested support from municipal president Carlos Carrasco to rehabilitate a harvest road and rebuild their fences, as their harvest has suffered significant losses due to severe damage caused by Hurricane Lidia. The damage has left them needing assistance, and they are awaiting help from the federal government. Mayor Carlos Carrasco has initiated efforts to rehabilitate the road and address the effects of the disaster on the agricultural sector.

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