January 18, 2017
Current crop Hi Oleic peanut values have risen over the month as tightness in the Argentinian market continues to be felt. Most suppliers have now finished processing this year’s crop, which is 2-3mths earlier than usual. The smaller 2016 Argentinian crop and a pickup in export demand from China and Europe has been the main reason for this tightness. Current crop offers now remain scarce, with only a handful of suppliers able to supply small parcels here and there. New crop values have followed current crop prices higher, mainly due to the fact that there is expected to be virtually no carry in of stock from the current season. The US also recently downgraded their current crop estimates from 3.2 million short tons to 2.8 million short tons, which has tightened the global supply of quality peanuts. All eyes are now on the Argentinian harvest (April-May) and plantings for the northern hemisphere crops. At the moment the Argentinian crop is progressing normally, however any setbacks would likely push new crop values higher.