Peanut farmers in Argentina have wrapped up an excellent crop , with yields that are significantly higher than those in the 2017-18 season, which was marked by excessive rainfall and below-normal temperatures.
The Argentine Peanut Chamber (CAM) just updated the crop estimates for the 2018/2019, as of September 2019. Its members reported total plantings of 388,000 hectares, with an average yield of 2,520 kg of peanut kernels per hectare.
CAM projects a total production of 1,396,800 metric tonnes (MT) of in-shell peanut, which equivalent to 977,760 MT of kernels. The total kernel estimate runs 11% higher than the previous forecast for the 2018-19 season.
This also is 248,400 MT of in-shell peanut more than in the 2017-18 season.
CAM’s 2018-2019 estimates edged upward, thanks to extraordinarily favorable weather. Across a wide area, rains pretty much fell in the right amounts and at the right time.
The CAM estimates are in line with our projection of 978,000 MT of peanut kernels at the farm level.
Overall, production increased 21.6% over the 2017-2018 crop.
Big Crops Elsewhere Makes For Bearish Market
We also expect that Argentina’s peanut exports will grow 53% in the new marketing year. CAM projects exports of 663,000 MT of edible peanut kernel. That is 53% more than the 434,000 MT exported in 2017/18.
An improved Argentine peanut crop comes as the U.S., China and India all report strong crops, which means an oversupply in world peanut markets. So, a bearish price tendency will be in place.
That will be somewhat counterbalanced by lower yields in Brazil and added demand in South Africa. However, we do not see significant demand growth on markets like Russia and Algeria.
Hari Georgalos’s contact information:
Sarmiento 1664 – (X5960ETY), Río Segundo – Cba – Argentina
Telephone/Fax: +54 (0) 3572 42 1809, Email: email@example.com, Skype: ahgeorgalos1