Market Wizard

Cooking Oils

The cooking oil reference is Palm, Soya, Corn, Peanut, Canola, Sesame and Olive oils. However, globally the choice of cooking oil is based on culture and economy. Amongst the edible oils, the palm has 35% market share, whereas Soya has 28%, Corn 1.15%, Peanut 3%, Canola has 14%.
The past five year price trends of the top 5 cooking oil by market share shows an annualised increase Of 13% (palm), 15% (Soya), 16% (corn), 10% (peanut) and 17% (canola).
Amongst the cooking oil, the highest inflationary pressure was seen in Canola and Corn oil; peanut oil onsumption rose 10%, whereas palm oil (palm has a higher market share) rose only by 6%. So what makes peanut oil have higher inflationary pressures in recent times?

Peanut Oil

Demand across countries (China, India, Nigeria, and Sudan) fuels peanut oil demand, and the prim ary consumers are China, India and Nigeria with 82% global market share. Peanut as produce has many utilities, unlike the com peting oil crop. For example, the peanut is used across several sign ificant food applications, while palm or soya is used only in oil and few industrial applications. The seasonality and volume of production during each crop also contribute to rebalancing the mar ket volatilities.

Conclusion

Peanut's diversified production and its roles based on the cultural and economic utility of the product across various countries have led to the fundamentals of its pricing mechanism. However, the dyna mics of the factors that determine peanut prices are not constant. Therefore it leaves an interesting arbitrage in the market for price discovery. What a magnificent nut, Godspeed peanut.

Peanut shells can use as organic mulch in gardening.

Using peanut shells is ideal for gardening organic mulch due to their slow carbon break down. They are a fantastic source of nitrogen, phosp horus, and potassium, and they can maintain moisture, regulate soil temperature, and prevent weed growth. As they break down, they release nut rients into the soil, enriching it and improving plant growth. They also contain allelopathic acid, which repels pests like termites and ants, making them an eco-friendly natural repellent. Utilising peanut shells as mulch is a practical and environmentally friendly solution for gardening

Global Peanut Market

In Gujrat sowing progressed only at 14% of the average rate over the past three years. The quantum of new crop harvesting in India (mostly Spanish/Java) is across five provinces in the Sout hen parts of India.
It is one of the best times to procure the world's best Spanish peanuts.
A quick round up
AP & Telangana: Crop arrivals are picking up gradually, anda steady supply of Spanish/Java peanuts is seen. The season will have an extended closure.
Karnataka: Yields have dropped by 50%, and the quantity arriving at the market is insufficient for local needs.
Tamil Nadu: 110% crop, 50/60 counts and maximum yields. This crop is one of the lowest in aflatoxin and PV, with an exten ded shelf-life.
Odisha: expected to have a lower yield loss of around 20% despite an increased acreage amid deficit rainfalls. Odisha's chronic issues continue on yields.
Kharif crop stocks have depleted at NAFED, and stock levels of the 2021 crop are at 20,000 Tons, which is insufficient ent to meet domestic oil demand. However, domestic oil and oil cake prices support peanut prices. In Raja sthan, the situation is similar, and stocks are stored only for sowing purposes. Indian peanut market could face the turmoil of demand and supply soon.

Market silence could be a positive sign. Despite a short crop, most Shellers and manufacturers are contracted and stocks commi tted. As a result, prices rose 5-7% more than the previous year. In some regions, the rate realised by the farmers is lesser; however, the farmers benefit through PLC. Therefore, this crop year has help ed farmers despite a lower crop scenario.
Peanut and cotton farming are intertwined, and cotton prices are reducing in the US market. There fore, it may increase the plantings for the 2023 peanut crop, but it is very early tocommenton it.

The mood on clemand for the current crop has risen to an unprecedented level amid the following crop updates and climatic uncertainty. In addition, the absence of rain increases the threat to European supplies resulting in hoarding. Shippers in Argentina demand more than $1650 for raw nut shipments to Europe (one of the historical highs). The reduction% of the acreage is still a significanl dispute. Although the crop didn't receive rainfall in the long run, and the ,weather is hot and dry, the rain in the coniing days wiii save the crop. Currenlly, there are fewer 38h2 offers and plenty of 60/70 and 80/100 offers in the market. The price quotes have risen by 50-100$/ton with China in the picture.

Deni and for the f arnistock is high, and the peanut-crushing capacity is entirely run for the Chinese market. Currently, the shipments of nuts are almost zero, and U1e peanuts are majorly used for crushing, ,which increases the profits on farm- stock. The current crop received welldeserved rain, and the harvest , will do well this tinie. Therefore, the yield of Brazil may increase y-o-y. Oil exports of the 2022 crop increased by around 86% co,npared to the 2021 crop, which is a steep increase. In the same period, the export of nuts is grown only by 12%, which is also a considerable fealconiparing the world tensions in war, and the major consumer of Brazil is Russia.

The futures market in China was bullish before the CNY, with the physical market running slow; after the CNY, both the market turned bullish, with oil prices remaining stagnant but the kernel prices shooting up by 5- 10% amid a steady rise in ,Africa and India. Usually. the trend is the other way around. Larger kernels are tough to find, while smaller kernels in the market are from Sudan. The new crop Sudan is expected to hit the Chinese market by March, and with the excess oil stocks at the crushers, China may be highly volatile in the next few nionths.

Sudan

Prices are quoted at their mnaxinium by the suppliers . A price range of $1300-1350 FOB for the 708o Spanish types. In addition, the container shortage is causing a significant hurdle for exports. Freight rates have increased by $400-600/20" to Qingdao or Jakarta. Beyond the price rise, the quantuni of exporter defaults in the market is high.

Nigeria

Goods are exported to neighbouring landlocked countries and used for doniestic consumption. The price is around $1300 FOB for export and 0.95$ per kg for the local market

Senegal

Prices are ridicul-ously volatile and have been increased bv local shippers and onsite Chinese buyers. Ex-Warehouse Sonocas are still trying to cover up its volume. The price bought by the Chinese was 475 FCFNkg. The additional concern is that crop damage was more significant due to excess rain. Hence the availability of Type 55 is scarce. Senegal along with Sudan, has become notorious for export contract defaults.

Editor’s Pick

Ms. Qiangian

Co-founder, Nanyang Qingfeng Peanut

Say about you

I founder Nanyang Qingfeng Peanut Purchase and Sales,we buy peanut from local farmers and process them to wholesalers

Can you describe how the peanut products will evolve in the next 30 years?

As our peanut has remained essentially the same for decades, I believe it will stay how it is. Despite the fact that there are many new varieties, they merely alter yields and harvest times. Kernels contents hardly differ.

Cultivar Highlights

A new peanut variety "FloRunTM '52N" by the University of Florida, USA.

FloRunTM '52N' was released on January 19, 2023 and represents the first normal oleic cultivar released by the UF/IFAS peanut breeding program in over 10 years. The UF/IFAS peanut breeding program develops both normal and high oleic type peanut varieites. FloRunTM '52N' was tested over a five year period for its yield and grade potential and was found to have excellent pod yield potential and high grades. In twenty-seven experiments across Florida, FloRun 52N was found to have about 4.5% higher yield than

... found to have about 4.5% higher yield than Georgia-06G ...

Georgia-06G, the dominant normal oleic cultivar grown today, with equal grade of about 77% total sound mature kernels (TSMK). It also has moderate resistance to tomato spotted wilt virus (TSWV) and better resistance to white mold disease than Georgia 06G. FloRun 52N produced about 38% medium seed on an in-shell basis and the seed count is about 650- 700 seeds per pound, making it smaller seeded than Georgia-06G. Seed of FloRun 52N will be in limited supply for the next two seasons with the potential to grow about 600 acres in seed increase in 2023. Source: Btillman | ifas.ufl.edu | Jan 20, 2023 | Field Crops, Peanut file photo: USDA

Peanut Innovation

The use of peanut Innovation oil in producing bioplastics.

Bioplastics are a type of plastic that are made from renewable resources such as plant based oils, starches, and cellulose. One of the plant-based oils that can be used as a feedstock to produce bioplastics is peanut oil. The process of producing peanut oil based plastics involves extracting the oil from peanuts and converting it into a polymer through various chemical reactions. To produce peanut oil-based plastics, the oil is first extracted from the peanuts using cold pressing or solvent extraction. The extracted oil is then purified and processed into a polymer through chemical reactions such as transesterification and polymerization. These plastics are biodegradable and compostable, meaning that they can break down naturally in the environment. Moreover, peanut oil-based plastics possess some unique properties, making them attractive for specific applications. They have a low toxicity profile and are resistant to water and oil, making them ideal for use in food packaging and food service products. Although bioplastics may not be a perfect solution to our plastic waste problem, they offer a more environmentally friendly alternative to traditional plastics and could play an essential role in creating a sustainable future.

Current Crops

Peanut Sustainability

Sustainable management of pea nut shell through bio char and its application as soil ameliorant

A typical agricultural waste product, peanut shells can be effectively handled by being turned into bio-char. A large portion of the agro industrial waste produced by the processing of peanuts is waste peanut shell. 28 million tonnes of peanuts are thought to be produced annually. The weight of the peanut shell alone in Asia ranges from 25 to 30 percent, producing 8 Mt of leftover biomass. Such leftover bio mass has a significant energy content and merits study. One of the best solut ions for the long term management of a significant volume of residual peanut biomass is pyrolysis. Sustainable agricultural products have an emphasis on crop yield as well as better agri cultural waste management and soil health preservation. Crop development is significantly influenced by soil quality, which is mainly influenced by the extensive use of inorganic fertilisers. As a result, the quality of the soil has declined, the amount of organic matter has dropped, and the diversity of helpful micro organisms has diminished. As a powerful tool for sustainable agricul ture, biochar, an organic amend-ment, has the ability to significantly enhance soil fertility and soil structure. It is common knowledge that peanut shells can be used as a fuel source and a source of energy for making biochar. A carbon rich substance formed during pyrolysis with very little oxygen available is refer red to as biochar. When employed as a soil amendment, bio char should have a high capacity for binding and water retention and shouldn't have a detri mental effect on the fertility or structure of the soil. Since it has a higher surface area and a lower bulk density, it may hold onto nutrients and water longer, preventing soil hardening. Rapid pyro lysis frequently produces porous bio char with macro-pores that routinely support healthy bacteria and fungi. Moreover, Micro and Mezzo-pores effectively hold nutrient moieties and supply moisture and other dissolved organic substances for enzymatic activ ities and microbial proliferation, which are thought to be an immediate change agent for soil qualities. Overall, the sustainable mana gement of peanut shells thro ugh the manufacture of bio-char and its use as a soil improver might be advantageous for the environ-ment and for agriculture. We can cut down on the quantity of agricultural waste that ends up in landfills and increase the productivity and health of the soil by turning a waste product into a useful resource.

...that peanut shells can be used as a fuel a source and ...

Good Agricultural Practices

Good Agricultural Practices on pest managementof Peanuts

Controlling and preventing damage from illnesses and pest insects is a part of peanut pest management. Typical techniques include Crop rotation: Growing peanuts in various fields each year can cut down on the number of pests and diseases. Cultural practises: Good crop man agement, irrigation, and fertilisation can keep plants strong and less prone to pests and diseases. Pest and disease control can be accomp- | lished chemically with the use of fungicides and insecticides. Using helpful insects like ladybirds to control pests is known as biological control. Creat ing peanut types that are resistant to particular pests and diseases through resistance breeding. Fields are routinely monitored in order to swiftly identify and address insect infest ations. Integrated pest management is a compre hensive strategy for con trolling pests that integrates a number of techniques to produce a workable and long-lasting result. For controlling pests in the production of peanuts, integrated pest manage ment is a successful strategy. Crop monitoring: Frequent field inspec tions to spot pest out-breaks early and decide on the best counter measures are critical elements of IPM in peanut farming. Cultural pract ises: Effective pest control measures, such as crop rotation, irrigation, and fertiliser, encourage healthy plant growth. Using beneficial insects like lady-birds and lacewings to control pests is known as biological control. Chemical control: Using targeted applications of insecticides and fungicides only when necessary, preventing misuse, and lowering the danger of chemical resistance. Creating peanut types that are resist- ant to particular pests and diseases through resist-ance breeding. Education and outreach: To enco urage long term and efficient pest control, farmers are being educated on optimal methods for pest manag ement, including IPM. IPM can offer a more long lasting and efficient method of managing pests in peanut crops by combining these elements.

Why is peanut oil special compared to other cooking oil based on price trends?
Could this be attributed to the multiple roles the peanut play?

Global Peanut Market

Peanut Innovation

Sustainability

Good Agri Practices