World peanut demand is up and the main reason for the increase is due
that China reduced its exports because they had a big domestic
demand. China might even begin importing peanuts. Appreciation of
the Chinese currency would increase the purchasing power of Chinese
consumers on world markets and increase China's demand for
imported commodities.
China's peanut exports in the first six months of 2007 rose by 20.7% to
more than 193 thousand tonnes, this is far lower than the 250,000 to
300,000 tonnes exported in the first half of each year between 1999 and
2005.
Last year, the main reason for low exports (160 thousand tonnes) in the
first half of the year (indeed, the lowest since 1998's 113 thousand
tonnes) was quality issues following rains.
The United States peanut production is forecast at 1,684,350 Short
Tons of farmers stock, down 3 percent from last year's crop and down
31 percent from 2005, due to reduced plantings and prolonged drought
conditions across the southeast region .
Indian peanut market in the major regions are steady and high as a
result of festival demands, which most likely to settle down by the end
of August 2007. Overall, market is headed toward a corrective period
before new season starts.
Brazil had problems with aflatoxin and shipping to Europe last season.
The consensus is that Brazil will require large investments in
infrastructure for them to be a long-term supplier.
Argentina, currently is willing to offer blanched runner peanuts, but not
raw peanut (with skin). There has been still demand of Raw Runner
60/70, but the exporters are reluctant to sell the small sizes, because
they reserve this sizes to be used as seed for the next 2007/08 planting
season. The first projections foresee increments in the planting area.
The shipments from January until July, 2007 reached more than 187
thousand tons. Among the countries of the European Union, Holland
heads the imports with 83 thousand tons. In the second place, showing
a significant expansion, Russia is with 16 thousand tons. Also the
Argentinean exports to United States increased, estimating that 10
thousand tons of edible peanut would be dispatched to that destination
this year.
Keeping in mind the scenario described, the problem of the tight global
supply of peanuts would be more evident in the first semester of the
year 2008.
that China reduced its exports because they had a big domestic
demand. China might even begin importing peanuts. Appreciation of
the Chinese currency would increase the purchasing power of Chinese
consumers on world markets and increase China's demand for
imported commodities.
China's peanut exports in the first six months of 2007 rose by 20.7% to
more than 193 thousand tonnes, this is far lower than the 250,000 to
300,000 tonnes exported in the first half of each year between 1999 and
2005.
Last year, the main reason for low exports (160 thousand tonnes) in the
first half of the year (indeed, the lowest since 1998's 113 thousand
tonnes) was quality issues following rains.
The United States peanut production is forecast at 1,684,350 Short
Tons of farmers stock, down 3 percent from last year's crop and down
31 percent from 2005, due to reduced plantings and prolonged drought
conditions across the southeast region .
Indian peanut market in the major regions are steady and high as a
result of festival demands, which most likely to settle down by the end
of August 2007. Overall, market is headed toward a corrective period
before new season starts.
Brazil had problems with aflatoxin and shipping to Europe last season.
The consensus is that Brazil will require large investments in
infrastructure for them to be a long-term supplier.
Argentina, currently is willing to offer blanched runner peanuts, but not
raw peanut (with skin). There has been still demand of Raw Runner
60/70, but the exporters are reluctant to sell the small sizes, because
they reserve this sizes to be used as seed for the next 2007/08 planting
season. The first projections foresee increments in the planting area.
The shipments from January until July, 2007 reached more than 187
thousand tons. Among the countries of the European Union, Holland
heads the imports with 83 thousand tons. In the second place, showing
a significant expansion, Russia is with 16 thousand tons. Also the
Argentinean exports to United States increased, estimating that 10
thousand tons of edible peanut would be dispatched to that destination
this year.
Keeping in mind the scenario described, the problem of the tight global
supply of peanuts would be more evident in the first semester of the
year 2008.