Peanut: 2019 is memorable and starting for 2020

2019 has passed, this year peanut market has experienced the higher point of recent years, and the enthusiasm of each link has increased. Please read what changes will happen in the supply and demand of the market in 2020.

Old  Crop  Peanut

After the Spring Festival of 2019, in March and April, the overall domestic market of peanut rose, during which there was slight fluctuations. The first round of increase occurred in March, and some parts of the market did not hold a large amount of stocks before the festival, and then there was a certain rigid replenishment demand after the festival with appropriate consumption. Under the demand-support with tight supply, the confidence of middlemen was boosted by the profitable prices. The second round of rise began in mid-April, and the continuous shortage of basic resources in supplying still supported the operational enthusiasm of partial middlemen. In addition, individual oil factories would raise their price in the current month when the acquisition intention was not reached, proceeding to push prices higher after benefit advantage.

New  Crop  Peanut

At the end of July, some new crop peanut began to appear in the market in local areas of Jiangxi Province. New peanut also listed one after another in some parts of Zhumadian, Xinyang and Nanyang in Henan Province in the middle of August. After the opening of high price, it entered the decline channel with the increase of supply, but the price rose again in October. At the beginning of the new peanut market, as a result of the high price of old peanut, the supply quantity was increasing slower than in previous years, being helpful for a higher price of new peanut. After that, with the increase of listed areas, the price dropped a little. However, in October, owing to the favorable expectation for the future market, some domestic practitioners and a certain amount of floating capital funded the construction of the depot, which supported many oil factories to access to market, so the price entered the upward channel again. In November, the demand support was insufficient, after a period of gentle adjustment, and the middlemen began to have a profit-taking mentality, being caused by keeping at a lower price.

Prediction Market of 2020

With the coming of the Spring Festival, the price of peanut ushered rise in a small range at the beginning of January. Some peanut oil factories beating the price of feedstock for oil and some selecting factories cutting the profit of real materials were the reasons why the price went much higher. At the same time, origin places didn’t restock goods and selecting factories had limited quantity. In addition, shipments of wholesale market with moderate procurement slightly improved. So the price of commodity will be slightly higher once again.