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Peanut Prices Surge Amid Concerns Over Supplies From Argentina | Spend Matters

The peanut market has seen an uptick in pricing lately, caused by the severe drought Argentina has been experiencing, which has also had an impact on other major crops, as reported in our previous post. Prices for Argentinian peanuts delivered to Rotterdam have increased from $1.26 per kg in February to $1.49 per kg in mid-April, up 18%, quickly approaching levels seen last year when prices were in a free-fall slide due to large global supplies.

In 2017/2018, prices were weighed down by a bumper harvest in Argentina, a large crop in India for two consecutive years and a record crop in the US. US production reached 3.28 million tons in 2017/2018, an increase of 30% compared with previous season, following a large increase in production area. Overall, global output in 2017/2018 is estimated at 44.1 million tons, up slightly 2% year-over-year but almost 10% above 2015/2016 production levels.

For the upcoming season, the market sentiment has changed considerably, as global players are bracing themselves for reduction in exports from the major exporter, Argentina, while lower acreage in the U.S. is also adding further pressure on the prices.

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Peanut Prices Surge Amid Concerns Over Supplies From Argentina.