The continuing drought (reported worst drought in 30 years) in Argentina is the main
news in the world peanut market over the past 2-3 months. Although over Easter
Argentina finally received decent rains, these rains will mainly help later plantings and
soften the soils to allow for digging of earlier plantings.
This drought will have a huge impact on all agricultural products whether soy, corn or
wheat and more. Losses on peanuts are predicted to be very large due to much lower
yields, processors are withdrawn from the market to assess what volumes and quality
will be harvested over the coming month or so.
Brazil will have a very good crop, however, pricing will follow that of Argentina and
processors from Brazil are also largely withdrawn.
USA after a bumper 2017 crop, intends to plant 18% less than last year and Chinese
prices have been firming slightly largely due to RMB currency movements.