20 Aug Global Peanuts Market Report 2019
Pangea Brokers updates the forecast of the 2019 Global Market of Peanuts.
Pangea Brokers is happy to share with you some updates for trend on the new 2019 Global Market of Peanuts.
Although the market seems quiet and stable in general there are a lot of things happening which eventually may have some impact on the peanut market.
Argentina basically finished harvesting which means about a month delayed, but with a much better quality and yield above average.
It is expected have around 550,000 to 580,000 mtons of kernels available for export.
However the surprising pre-election results has caused that the peso to fall more than 15 against the dollar.
Although there are buyers who believe that the price of peanuts could fall, sellers in Argentina believe that increase of export taxes is also an option we should not ignore.
Brazil is in no position to offer anything until new peanut crop is available, because they are basically sold out.
Farmers are still holding some stocks which they want to sell at very high levels and it seems that sellers are slowly catching up on delayed contracts
Most sellers are doing their utmost to fulfil their outstanding contracts having in mind the crop was 25% smaller than expected and with quality issues on top of that.
USA is having issues with their 2018 crop.
Since late July, US Peanuts are also under Regulation 669/2009 and when entering the EU they will be controlled for the presence of aflatoxin.
The EU has yet to decide if they will impose tariffs on some US goods including peanuts and what those tariffs will be if imposed. This could change the market for everyone but it will take until April/May 2020 before we will know more and if peanuts will be a part of such import tarriffs in the first place.
So far the US crop looks fine but we will have to watch the weather closely in the next 6 weeks.
India had an excellent round of rainfall during the beginning of August and this brought much needed relief to the groundnut crop.
The crop will be 10–15% higher than last year.
China has faced challenges due to dry weather in the early stages (during plantation and growth).
This has improved in June and onwards thanks to sufficient rainfall. Overall crop 2019 is expected to be good at this point.
6. South Africa
South Africa has a very small crop and will need to import to satisfy demand.