Post-Diwali until November 25, the Peanut prices were staying between stable and firm. Good local demand for the nuts has supported the spot market prices for a while now. However, according to the market experts, the prices are likely to go down for the crop.
Though the harvesting season is over for peanuts, the arrival of new crops is low. Currently, both the stockists and financially strong farmers hold on to their stocks and the new crops. They believe that with an increase in domestic and international demand, the prices will go high shortly.
While the stockists continue to hold the stock; farmers who work on a daily basis are selling their produce. Therefore, the market has been steady.
Also, the stockists and substantial farmers refusing to sell the new crop at a lower price have caused the price of peanut extract to move up by $80 to $100 per MT (which is about Rs 8 to Rs 10 per kg). It has been reported that the raw peanut, extract, and peanut oil demand has been strong and stable in the domestic market.
However, China has not placed any demand for the export of peanuts from India yet. Traders hope that the export demand for the crop coming from China will soon make the prices for the nut go high.
The Chinese market for peanuts remains unstable at the moment. With the stock levels still high in the oil and peanut kernel market, the overall small package sale is not faring well in the country. Moreover, with high purchases during the last season and expected carryover stock, It is unknown, when China will start purchasing new stock.
Furthermore, with the less local demand for the seeds, mainly the fired peanut due to the increase in soy oil price has dropped the sale of peanut in the food segment by 20 to 30 percent this year. COVID-19 is another factor that has also negatively impacted the seeds’ price with restrictions in eating outside, traveling, and closure of restaurants and food joints.
Total arrivals of the week – 44,987.36 tonnes, and the maximum were from Gujarat 30152.77 tonnes.
This week the peanut prices for all its varieties increased on November 22 and 24, before the price dropped on 25. Earlier, the price for all the varieties had increased on November 18, 15, and 10. The market for peanuts was stable except on November 2, when the price dropped.
|November 25||$1,21 per kg FOB|
|November 24||$ 1,22 per kg FOB|
|November 25||$1,180 per kg FOB|
|November 24||$ 1,185 per kg FOB|
|November 25||$1,150 per kg FOB|
|November 24||$ 1,155 per kg FOB|
|November 25||$1,41 per kg FOB|
|November 24||$ 1,42 per kg FOB|
|November 25||$1,34 per kg FOB|
|November 24||$ 1,35per kg FOB|
|November 25||$1,32 per kg FOB|
|November 24||$ 1,33 per kg FOB|
Experts believe that the trend of peanuts is going down, it can become a significant concern for the farmers and stockists. Unless the local demand improves, the market can go towards a bearish mode.
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