The lack of significant and widespread rains continues to hinder planting progress in parts of the Argentine peanut area (see the world crop outlook below for a broader picture).
So far this spring, rainfall totals are running well below average. In extreme cases in the peanut belt, totals are up to 80% below average.
Under these conditions, planting progress varies greatly by location. Some fortunate producers have been able to finish plantings, but most lag behind. In places, growers have planted less than 50% of their intended crop.
Many have risked planting with low soil moisture, and irregular emergence and plant growth is obvious in many fields. Without rain to activate herbicides, concerns also have been raised about potential lack of weed control with pre-plant and pre-emerge herbicides
Temperatures and winds also have been irregular and variable compared to averages
A Bullish World Market
In the southern hemisphere, droughts are considerably delaying 2019/2020 peanut planting in Argentina, Brazil and even South Africa.
That follows a drought that affected 450,000 acres in the Southeast region of the United States. All of this has exerted a strong influence on the current marketing year (October 2019 to September 2020. The world peanut market is in a bullish trend.
The global peanut industry is set up for great instability, and the sudden increase in pricing in China’s domestic market has generated plenty of buying from India and the U.S.
Peanut oil crushers have been buying raw shelled peanuts at U.S. $1,285 per metric ton in the domestic market. This price, which is above average, is supporting the domestic market, so it is expected that the price market will not decrease in the short term.
All the Chinese dealers are busy importing from overseas to catch their current domestic demand.
Georgalos Peanut World
Sarmiento 1664 – (X5960ETY) Río Segundo – Cba – Argentina
Tel/Fax: +54 (0) 3572 42 1809, Skype: ahgeorgalos1