Weekly Review-Peanuts

04-Jan-2025 07:24 PM

Peanut prices remain soft despite slow arrivals

Market Overview
Despite a slow pace of arrivals, peanut prices have remained relatively stable in most regions, although there are some fluctuations based on local supply and demand dynamics. Farmers seem hesitant to sell at low prices, resulting in a temporary suppression of stock. This is partly due to expectations surrounding government procurement efforts, which are yet to ramp up significantly. The new Kharif peanut crop has started arriving in markets across Gujarat, Rajasthan, Karnataka, Maharashtra, and Uttar Pradesh. Additionally, sowing for Rabi season peanuts has reached levels comparable to last year, which is a positive sign after earlier concerns about lower sowing areas.

Arrivals

The pace of peanut arrivals has slowed in several key regions. In Gujarat, the Rajkot market saw a steady supply, with 15,000 bags arriving on December 30 and 11,000 bags on January 2. In Junagadh, the arrival figures were smaller, with 4,000 bags on December 30 and 3,000 bags on January 2. Similarly, arrivals in Jhansi, Uttar Pradesh, dropped significantly on January 3, with only 3,000 bags coming in compared to the usual 11-12 thousand bags. However, Mahoba market maintained a steady daily arrival of 7,000 to 9,000 bags. Notably, the Mauranipur market saw a dramatic increase in arrivals, with numbers rising from 3,500 bags to 16,000 bags.

Price Trends

Prices have experienced slight variations across different markets. In Rajkot and Junagadh (Gujarat), prices remained stable. However, in Jhansi, Mahoba, and Mauranipur, prices fell by Rs. 100 per quintal, while in Solapur, Maharashtra, prices increased by Rs. 250 per quintal, reaching Rs. 6,600 per quintal. This indicates some regional disparities in pricing, influenced by local supply conditions and demand.

Peanut Seeds

Peanut seed prices showed mixed trends. In Bikaner, the price for peeled peanut seeds (60-70 count) dropped by Rs. 100, settling at Rs. 7,100 per quintal. Meanwhile, in Solapur, the price of both 50/60 count and 60/70 count seeds rose by Rs. 500 and Rs. 550, respectively, reflecting a tightening supply or increased demand in that region.

Groundnut Oil

Groundnut oil prices continued their downward trend, particularly for loose oil, which fell by Rs. 2 to Rs. 4 per kg. This price reduction is attributed to limited demand. However, the price of branded groundnut oil remained stable, and there was no significant change in the price of filtered oil. Kota and Jaipur markets reported a somewhat soft trend in oil prices, indicating a general lack of upward momentum for groundnut oil in the short term.

Summary

Peanut prices have been relatively soft, with small fluctuations depending on regional supply conditions. While arrivals have slowed, there is still considerable supply in markets. Prices are expected to remain steady in the coming weeks unless there are significant changes in procurement activities or further shifts in demand.