Peanuts, Market Update 24.08.2022
Mundus-Agri: Speculations over the new peanut crop keep changing in India. While concerns were recently being voiced over the Munda disease causing large parts of the crop to rot, things have now totally changed.
Although Kharif sowing ranges slightly lower than last year, the market anticipates production to be similar in size. Rainfall was in line with expectations, and farmers stated that the condition of the crop was better. Although the Munda disease certainly has a devastating impact in some places, it is not having a major impact on yields. Sowing may have declined by 12% in Gujarat, but production should be high as long as heavy rains do not occur. The next 20 days will prove decisive.
These encouraging production prospects are weighing on demand for the present crop, which is marginally lower. For suppliers, it is also becoming increasingly difficult to sell low-quality nuts as the quality of the new crop is expected to be good. On top of this, the market is sluggish due to the festival season, and arrivals have slowed. The spot markets in Gondal and Rajkot, however, reopened on 22 August. Prices should remain stagnant in the next two weeks.