Peanuts: trade faces hurdles
Mundus Agri. Last week, several factors came together to dampen trade in the Indian peanut market. In the US, the USDA is still sticking to its high crop estimates.
Elections bring trade to a standstill.
After recent price increases, the peanut market saw slight declines again last week. Elections were held in the Indian state of Gujarat, the most important trading center for peanuts, which brought the main markets to an almost complete standstill for two days. In addition, according to government regulation, citizens were only allowed to carry 50,000 rupees in cash during this period, which further slowed down trade. The fact that the prices for sunflower oil are significantly lower than those for peanut oil further slows the groundnut market. According to Indian traders, they are, therefore, currently stuck with about 30% of their arrivals. Exporters are still waiting impatiently for China to start buying larger quantities. Before then, no noticeable price increases are to be expected; on the contrary, there were price declines compared to the previous week.