Market Wizard

2022 is the year of the Tiger and 2023 is the year of the Rabbit in the Chinese calendar

China started its 2022 marketing year with carryover stocks of 0.7 MMT (as per USDA) compared to 1 MMT in 2021. The 2021 crop harvest was short by 4% and by 18% in 2022. The imported peanut and oil volume for 2021 was 0.8 MMT tons & 0.5 MMT, respectively. Accordingly, China could import 0.85 MMT tons of peanut & 0.5 MMT tons of oil in the MY 22-23; however, how the execution takes place collectively as the Chinese demand will define the world trends.

Crouching Tiger (2022)

So far, China's demand has not shown the pouncing of a crouching tiger. The buyers have been very selective and collective about their choice of origins. Indian peanuts were traded between $1100-1175/Ton, oil be twe en $ 1850- 1950/Ton, African peanuts between $950- 1250/Ton, and American farmer stocks between 800-900/Ton while the Argentinian HO till $1350/Ton. A crouching tiger or a less hungry tiger?

Hopping Rabbit (2023)

Will the Chinese demand in 2023 be like a hopping rabbit? Accor-ding to the statistics of carryover stocks, covid lockdowns, a slump in consumption and a defensive Chinese Yuan, the Chinese buy-ers will be selective in deal ma-king and choose to play defence. However, with the steady open-ing of the lockdown cities, we expect the Chinese demand to revive after January 2023. How-ever, the execution of the deals could be slow & steady and not pouncing. Godspeed China!

Peanut oil is good for dry, brittle, & dandruff hair.

Peanut oil contains highly moisturising antioxidants and often helps with dry scalp conditions such as dandruff and brittle hair. In addition, peanut oil contains various fats, such as vitamin E, which can reduce hair's protein loss that contributes to thicker, more hydrated, and healthier hair. Also, studies have found it can help prevent an imbalance between oxidative stress and antioxidant defence in psoriasis. Also, we can use it to replenish oil on the hair shaft.

Global Peanut Market

90% of the Gujarat harvest is over, with arrivals from north Gujarat slowing down. After December, most of the stocks would be available with the stockiest. This year NAFED failed on the MSP program amid market rates trading higher than MSP. The farmer centres witn-essed excessive arrivals and often had to carry forward sales to the next day. It's a sign of weak sales. Local and export oil demand was mixed and volatile. The market is presently running like a hung parliament. The Southern crop sowing is excell-ent; with a supportive weather system, the harvest will be during February 2023. Some Southern states are yet to start sowing for harvest in March-April 2023. Overall, the Rabi peanut sowing already crossed the five year average by 10% and the 2022 average by 9%. Therefore, the Spanish crop of 2023 could be a bumper crop.

The crop is harvested by 80% and is short by 6% y o y. So even though the produce quality is good, there isn’t much of Jumbo’s available. Nevertheless, the demand is good amid Christ-mas. On the export side, Mexico and the EU show a declining trend in volume, but there is an increase in export trend for Japan, Cana-da and the UK. China too is seen doing bottom fishing for farmer stocks but in vain.

Demand went down to the levels of down stable in Europe after an excellent sign in order last month. After a slight price increase in the European mark-ets last month, the trend shifted from steady to downward. Concerning the 2023 crop, input costs increased, and most shell-ers find the market's movement unpredictable. Moreover, with new crop planting areas redu-ced by more than 13%, shellers are waiting for more time to analyse and predict the future. Therefore, most likely, the prices could witness some more cor-rection.

85% of the 1ew crop planting had been completed with rising input costs. Farmers who shifted to peanuts recently have started planting other crops amid a 5 - 10% rise in input cost. Shippers feel that the price may rise during the arrival of new crops. Peanuts of the 2022 crop are used majorly for oil crushing, and the shipments are mostly to China with reasonable volume. Despite the challenging strides, the export volume rose by more than 13% y o y.

The market trends locally were mixed, just like the covid lock-downs. The local demand is stale, and new positions for December, January and Febr-uary are seen with poor partici-pation. Large oil crushers with sizeable stock protect their value by placing the market on the upside. The futures traded sideways with a downward bias. It is increasingly evident that China is becoming a super-market of various peanut orig-ins. Therefore the trends are often mixed and dominated by crushers. Plenty of stockings are taking place inside the cold room.

Sudan

Sudan's new crop arrivals soared with the prices amid Chinese demand and the "hope" of marketmen. Chinese are keen to buy as long as the price is below their target levels of $1200 - 1250/ton. The price range is$1150 - 1175 FOB. Prices have been trending lower recently.

Senegal

he new crop started, and the government has fixed the price of 275 CFA per kg. The offering is full fledged, and FOB price ranges are between $1000 -1075/ton FOB Dakar port. Demad is stable.

Editor’s Pick

Chevron and Texas A&M Agrilife have signed a multimillion dollar contract to create a new peanut that can be converted into an eco friendly renewable fuel source

Cason an assistant professor of peanut breeding and genetics has research plots in 13 locations and about nine different counties that produce peanuts in Texas. Experience played a role in landing a five year, multimillion dollar contract with Chevron to develop new species of peanut that might be suitable to use as a renewable source of diesel fuel. The peanuts that we're going to grow are going to be crushed for all, and then taken to refineries to be refined into aviation fuel or renewable diesel. Cason also said that Chevron is building the capacity to produce 100,000 barrels a day of renewable fuels in its manufacturing system by 2030. Downstream Techn-ology and Services, said in a press release announcing the partnership.

Mr.Andrés H."HARI" Georgalos

Director at Georgalos peanut world Say about you

I work as a Director & Business intelligence at Georgalos peanut world. It Provides World Peanut Market Intelligence, the most intelligent point of our organisation.

Do you think organic peanut is widespread and it can have a big future?

It has solidly increased consumers and demand in the market and also has a niche market share. Maybe it won’t have a big future like any other new varieties of peanuts. Let’s wait & see what will happen in the organic peanut market because we can’t calculate it. It’s still in the early stage.

Cultivar Highlights

Tolerance of Peanut genotype to salt stress

Salinity affects about 20% of all irrigated agricultural fields and over 7% of the world’s land surface. It is estimated that approximately 50% of arable land will be affected by salinity stress by the year 2050 (Shrivastava and Kumar, 2015). Increasing concentrations of salt in soil and or irrigation water is a major threat to agricultural production in arid and semiarid regions. It is anticipated that because of the buildup of salinity in soil, there will be a drastic reduction in crop yield by inhibition of seed germination, seedling growth, flowering, and fruit set (Sairam and Tyagi, 2004). In Peanut, the Tolerance Index (TI) for genotypes KDG-197 (TI 96.40%) was found to be the most tolerant under a salinity followed by R2001-2 (TI 87.92%), VG-315 (TI 84.05%), TCGS1157 (77.59%) and TG51 (73.67%). While the genotypes Girnar3 (TI 47.57%), OG52-1 (TI 49.09%), TVG-0856 (TI 49.28%) and J86 (TI 50.66%) were the most susceptible genotypes based on their relative performance under stress in respect of total dry weight. Reference A. Pal* and A.K.Pal, 2017. Physiological Basis of Salt Tolerance in Groundnut (Arachis hypogaea L.).

...susceptible genotypes based on their relative performance...

Peanut Innovation

An Alternative extraction method for safe and efficient peanut oil extraction

Peanuts are an essential food source of lipids and protein in developing and developed countries, and peanut oil is one of the major oils in the human diet. Peanut seeds contain 27–29% protein and 40–50% oil content. Oil from peanuts is conventionally extracted by either mechanical pressing or solvent extraction. Mechanical pressing is less efficient, leading to low oil recovery (40–60%). Although its recovery is in the 90–98% range, solvent extraction has inherent disadvantages of poor quality of protein in oil cake (meal), high investment, and energy requirements. Hence, there is a need to explore alternative safe and efficient oil extraction processes that may also result in edible protein. Aqueous enzymatic oil extraction is one alternative eco friendly process based on the simultaneous isolation of oil and protein from oilseed by dispersing finely ground seed in water and separating the dispersion by centrifugation into oil, solid, and aqueous phases. In addition, certain enzymes during extraction enhance oil recovery by breaking cell walls and oil bodies.

Current Crops

Peanut Sustainability

Peanuts are a naturally sustainable crop and one of nature’s original “zero waste” plants. From roots to shells, every part is utilized throughout the planting, growing, harvesting and production process. Peanuts are water efficient and enrich the soil with fertilizer; farmers are producing more peanuts on the same land with fewer inputs. Plus, many of today’s peanut growers are multigenerational honouring the past and preparing their land to produce food and fibre for the future generations .

Water Requirements

It takes 3.2 gallons of water to produce one ounce of peanuts. Efficient water usage is strongly connected to peanuts and sustainability. The deep roots of the peanut plant allow the crops to seek water from deep in the soil. Most peanut fields are non irrigated and rely solely on rainwater. Because of this, they have one of the smallest carbon footprints of any nut. Peanut plants are also hardy during water shortages because they can pause their growth and consume less water in times of drought.

Peanuts Efficiency

Peanuts and sustainability go hand in hand. Peanut farmers are making continuous improvements in water conservation, chemical reduction and land resource management. When comparing the carbon footprint of nuts, peanuts have one of the smallest. When looking at the sustainability of nuts, peanuts (which are botanically a legume) shine because they have the unique ability to improve the soil in which they grow. Peanuts are nitrogen fixing, which means the plant takes nitrogen from the air and turns it into food. Because of that, peanut plants do not need a lot of extra fertilizer and are able to rely on the nutrition left by previous crops. After peanut harvest, the plant matter in the field is often reincorporated into the soil to provide a head start on nutrition for the next crop planted. Farmers utilize peanuts as a rotation crop because peanuts add to the soil, rather than be taken away. Peanuts are efficient users of resources requiring less water, fertilizers and pesticides, which means peanut production has a reduced carbon footprint.

Good Agricultural Practices

Storage of Groundnuts

Groundnut can store either shelled or in unshelled form, stores better in pods than as seeds. It is important to remove all damaged, discoloured, rotted, immature and sprouted pods, other plant materials and soil from the produce before storage. Groundnut is best stored unshelled in cool, dry conditions, protected from rain and rodents. Under unfavourable conditions, groundnut seed loses viability quickly. Safe storage of groundnut requires an atmosphere with a low relative humidity of 60 to 70 %. Storage facilities for groundnuts should be weatherproof and free from insect and disease bearing litter. Before bagging, pods should be dusted with Actellic Super to protect them from storage pests. Bagged groundnuts whether shelled or unshelled should not be placed directly on a concrete floor due to the risk of dampness that may cause moulds to develop. Shelled groundGroundnut can store either shelled or in unshelled form, stores better in pods than as seeds. It is important to remove all damaged, discoloured, rotted, immature and sprouted pods, other plant materials and soil from the produce before storage. Groundnut is best stored unshelled in cool, dry conditions, protected from rain and rodents. Under unfavourable conditions, groundnut seed loses viability quickly. Safe storage of groundnut requires an atmosphere with a low relative humidity of 60 to 70 %. Storage facilities for groundnuts should be weatherproof and free from insect and disease bearing litter. Before bagging, pods should be dusted with Actellic Super to protect them from storage pests. Bagged groundnuts whether shelled or unshelled should not be placed directly on a concrete floor due to the risk of dampness that may cause moulds to develop. Shelled groundnuts are fragile and are exposed to various agents that cause physical, chemical and biological deterioration. They rapidly lose their seed viability when stored under natural conditions. Adequate air space should provide between the surface of stored groundnuts and the floor using pallets or similar materials. Avoid storing groundnuts in buildings where the temperature may become too high >30°C. Proper storage is important to maintain groundnut quality and prevent Aflatoxin contamination. That is produced by various fungi. Seed retain viability longer when stored in the pod than shelled. Groundnut seeds to be used for planting should be treated with fungicides to prevent damage from seed rotting and damping off fungi in the soil. The use of dried Neem leaves could also be used to control storage pests in groundnuts. Groundnut seed should not be carried over more than a year if it is to be sold as certified seed.

Decoding the Chinese Peanut Demand
Little is known to the learned when it comes to understanding China. Is it a crouching tiger (2022)? Or a hopping rabbit (2023)?

Global Peanut Market

Peanut Innovation

Sustainability

Good Agri Practices