WORLD PEANUT NEWS - AUGUST 2021

WORLD PEANUT MARKET UPDATE

                ARGENTINA - The harvest for the 2020/21 season may be technically completed. The yields obtained

in general are very acceptable, located within the usual historical ranges.

                The Ministry of Agriculture of the Nation reported that, as of July 22 the peanut harvest is finished, with yields that averaged 3150 Kg./Ha (in-shell basis), a national production of 1.25 million metric tons (in-shell basis), and an area planted of 400.000 hectares.

                PEANUT SMUT continues spreading spatially and increasing rapidly in all productive areas, it is even reaching very quickly those considered "new". The damages caused in the yields and in the quality of the kernels grows dangerously if it is compared to the effects that were observed only 2 or 3 years ago.

                PEANUT BLIGHT affects less widely, but in some areas it severely punished cultivars, and where this occurred the losses were considerable.  The productive sector continues with the search for land for the next season, at

LEASE PRICES ABOVE THOSE PAID IN THE ENDING SEASON. This situation puts a very strong warning light on the productive profitability of the cultivar.

                Diego Yabes, vice president of the Argentine Peanut Chamber, reported that the ELIMINATION OF EXPORT TAXES would allow, among other things, to be able to compete on equal terms with other origins that do not have this type of cost, such as BRAZIL, USA and CHINA, among the main ones.

                Being able to work without this cost would allow us to be more competitive in all markets and, consequently, to increase exports and, finally, to increase fiscal revenues largely and to increase investments in infrastructure and installed capacity, generating also more work throughout the chain.

 

EUROPEAN UNION

                Very little going on, and prices are stable with crops in South America looking good in terms of quality and quantity so no worries over supply this season.

                The European Union has a stated goal of greatly reducing use of AG CHEMICALS and converting 25% of its land to ORGANIC by 2030.  As the world’s largest importer of PEANUTS, they will apply pressure to other countries to follow their “GREEN DEAL” model of SUSTAINABILITY over productivity.

                An EU “GREEN DEAL” model of agriculture could be especially disastrous for developing countries that rely on the EU as an export market, and will attempt to pressure farmers to abandon proven and safe agricultural technologies

                                                               

CHINA

                MANY MAJOR PEANUT PRODUCING COUNTIES AT CHINA’S HENAN HAVE BEEN AFFECTED:

PEANUTS GROWN IN LOW LAND AREAS HAD FLOODS IMPACT

                Henan has China’s largest peanut planted area, accounting for about 26% of national cultivation. Henan’s current peanuts crops are in the flowering and pod-setting period. This is an important phase determining the quality and yield of peanuts.  Henan’s peanut planted area decreased 10-20% this season compared with                              last year as some growers have switched to more profitable crops such as corn.

                The domestic peanut market's spot price of peanut grains remained weak and stable, and the purchase and sales continued to be light; the recent price of grain peanut may hardly change significantly.

                The domestic inventory level was high year-on-year, and demand was limited, while imported peanut continued A small amount of arrival in Hong Kong will increase the pressure on the supply of peanuts in the market.