For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American peanut oil market faced significant impacts from the declining prices observed in the South American region, particularly Brazil. The notable oversupply of peanuts, coupled with weakened demand and heightened competition among major producers, led to a bearish market sentiment that reverberated across North America. Initially, North American exporters benefited from higher export prices due to favorable international quotations; however, as Brazilian prices plummeted, pressure mounted on North American prices, compelling them to adjust downwards to maintain competitiveness. The processing sector in North America also felt the effects, as the influx of lower-priced peanut oil from South America forced processors to reconsider their pricing strategies amid rising production costs driven by inferior-quality crops.
Additionally, reduced inquiries from key end-users further contributed to a decrease in demand for North American peanut oil. By the end of the quarter, while there was some stabilization in prices as the supply-demand scenario improved, the overall market turnover remained cautious, with stakeholders adapting to the prevailing conditions driven by global supply dynamics and shifting consumer expectations.
Asia Pacific
Moving into the third quarter of 2024, the Asia-Pacific (APAC) region experienced a significant downturn in peanut oil prices, with India facing the most pronounced fluctuations. Prices surged substantially until mid-quarter but then dropped sharply as September began. Up until August, the market exhibited a steady upward trajectory, characterized by a consistent rise in inquiries within the regional sector. Strong demand from key industries, particularly food processing, kept procurement levels elevated, with manufacturing entities operating at high capacity to meet this demand. However, rising energy costs hindered their ability to scale production effectively.
Compounding these dynamics was a disruption in weather patterns affecting the winter sowing of peanuts in India, which raised concerns about potential supply shortages and sustained higher prices for the commodity. Reports indicated crop damage in certain areas due to heavy rainfall, adversely impacting overall production and contributing to elevated price levels. Traders, anticipating sustained demand, strategically liquidated inventories from 2023 at premium prices, which supported the price rise throughout August. However, a significant decline in prices occurred by the end of September 2024, driven by reduced quotations from end-users. Despite sufficient availability of peanut oil to meet industrial demands, domestic factors, including recent harvest patterns and crop yields, influenced market dynamics. Early estimates indicated that the peanut harvest would be lower than initially anticipated, but supply was expected to increase substantially post-mid-October as peak arrivals of both Bold and Java varieties commenced. Recent rainfall may have lowered the quality of early-harvested peanuts, potentially increasing the volume available for oil extraction. Overall, the trading environment for peanut oil remained subdued throughout the quarter, culminating in a notable price drop by the end of September.
Europe
In the third quarter of 2024, the European region continued to follow the market trend of key producing nations including the South American region. The oversupply of peanuts, coupled with weakened demand and increased competition from major producers, created a ripple effect that impacted European importers and traders. Initially, the quarter began with rising import prices, bolstered by favorable international quotations. However, as the quarter progressed, prices fell sharply due to reduced inquiries from the regional market. While this declining price provided a short-term benefit to consumers and food manufacturers reliant on peanut oil, lower costs for imports translated into reduced production expenses. However, the volatility in supply dynamics and concerns over the quality of peanuts from regions like India and Brazil contributed to uncertainty in the market. This situation was further exacerbated by regional factors such as fluctuating energy costs and adverse weather conditions affecting peanut crops, which raised concerns about future supply stability. As a result, while the price drops initially appeared advantageous, they masked underlying supply chain challenges that could affect European market dynamics moving forward. Overall, the third quarter concluded with a bearish sentiment, similar to that of other nations.
South America
The third quarter of 2024 was marked by a significant decline in peanut oil prices in the South American region, particularly in Brazil, where the most pronounced price fluctuations occurred mid-quarter. The market dynamics were shaped by a confluence of factors, including an oversupply of peanuts, weakened demand, and intensified competition from major producers. At the outset of the quarter, export prices initially rose due to favorable quotations from international markets. However, supply-side challenges emerged as peanut yields were adversely affected by lower-quality crops, resulting in decreased yield per acre and elevated production costs. The processing of inferior-quality peanuts further complicated the supply landscape, necessitating more intensive processing and cleaning, which increased expenses for processors. As the quarter progressed into August, prices experienced a marked decline, reflecting a broader pessimistic trading trajectory. This downturn was largely attributed to reduced inquiries from key overseas markets, notably China and the Asia-Pacific region. Recent peanut harvests contributed to rising stockpiles among distributors, fostering a subdued market atmosphere characterized by declining transaction volumes driven primarily by inquiries rather than proactive purchasing. The abundant supply prompted consumers to anticipate further price reductions, adversely affecting Brazil's competitive position in the global peanut oil market, particularly against countries like India, which also projected a robust peanut harvest. The oversupply scenario exerted downward pressure across the value chain, leading to bearish market sentiment. Despite these challenges, prices began to stabilize towards the quarter's end, supported by a more balanced supply-demand scenario that aligned with current inquiries focused on essential needs.
For the Quarter Ending June 2024
North America
Throughout the second quarter of 2024, peanut oil prices in North America mirrored the market trends of exporting nations, particularly South America. In April, the market experienced a downward trend, significantly influenced by the strategic actions of the USA, a major importer of peanut oil. Downstream processing enterprises adjusted procurement strategies in response to an oversupply and inquiries from end-user oil processing mills, keeping market transactions on the southerly side.
Moving into May, the market observed a steady upward trend, with prices on the northerly side. Market analysts and traders noted that supplies remained moderately sufficient among downstream suppliers, driven by inquiries from regional markets. Additionally, the appreciation of the US dollar against the currencies of exporting nations played a crucial role. This currency appreciation benefited downstream buyers and traders, enabling them to accumulate goods at a lower cost. However, as June concluded, the United States saw an opposing pricing trajectory. The intricate web of interconnected factors, including international price fluctuations and regional demand strategies, underscored the complexity of market dynamics during the month. These factors influenced the overall supply-demand landscape, providing a comprehensive view of the multifaceted forces shaping peanut oil prices throughout the quarter.
In summary, Q2 2024 for the North American peanut oil market was marked by fluctuating prices driven by global market trends, supply chain adjustments, and currency dynamics. The strategic procurement adjustments by downstream processing enterprises, influenced by oversupply and end-user inquiries, initially led to a downward price trend throughout the quarter.
Asia Pacific
During Q2 2024, the peanut oil market in the APAC region, particularly in India, experienced mixed pricing trends. In April, prices saw a steady drop due to stable demand, higher arrivals of groundnut crops from recent harvests, and reduced trade momentum. The harvest season brought an oversupply of peanuts, leading to a decrease in peanut oil prices. Fresh crops entering the market required the selling of existing stocks at lower prices to make room for new inventory, incentivizing bulk purchases by retailers and wholesalers. Despite these conditions, market trade momentum remained weak throughout the month. In May, however, prices exhibited a steady upward trajectory, capturing the attention of industry stakeholders and policymakers. This rise was driven by increased downstream purchasing, fueled by the perceived health benefits and versatility of peanut oil in culinary applications. Additionally, heightened competition in international markets strained domestic supplies. Escalating costs of agricultural inputs, including fertilizers, labor, and energy required for manufacturing, also exerted upward pressure on prices during the month. By June, market sentiment had dropped considerably, with prices falling steadily. Despite buoyant demand conditions spurring expansions in new orders, output, and buying levels, transactions involving peanut oil within India's domestic market declined. A surplus of peanut oil supplies relative to overall demand within the country put downward pressure on prices as suppliers competed for market share, creating a favorable environment for buyers seeking cost-effective solutions. Throughout the quarter, the peanut oil market faced inflationary pressures, but the fastest rate of hiring in more than 19 years indicated resilience. Overall, market sentiments for peanut oil in Q2 2024 remained pessimistic, with an average price drop of nearly 2 percent compared to the previous quarter of the same year. The mixed trajectory of prices reflected the complex interplay of supply and demand dynamics, international competition, and cost pressures in the peanut oil market.
Europe
Throughout the second quarter of 2024, the European Peanut oil market closely mirrored pricing trends in North America, particularly the United States, exhibiting a predominantly bearish trajectory with modest fluctuations mid-quarter. The initial decline was driven by reduced purchasing activities and declining consumer confidence, both influenced by rising inflation. Weak export activity, low demand from European nations, and a narrowing price spread between Peanut oil and soybean oil exerted pressure on contracts, resulting in decreased imports from key producing nations. Currency depreciation, especially the weakening of the Euro against foreign currencies like the US dollar, further increased the cost of imports for European countries. Consequently, traders were reluctant to make new purchases, focusing instead on destocking their previously accumulated inventories. Additionally, Peanut oil prices were influenced by price movements in related oils as they competed for market share in the global vegetable oils market. The general preference for alternative edible oils in the terminal catering industry across European nations led to a continued decline in inquiries concerning Peanut oil, further weakening market transactions. This shift in preference and the competitive landscape contributed to the overall bearish market sentiment and reduced trading activity in the Peanut oil sector in Europe during Q2 2024.
South America
Throughout Q2 2024, the export prices of peanut oil from South America, particularly Brazil, exhibited a downward trend with a modest rise in the middle of the quarter. In April 2024, Brazil's peanut oil export prices dropped steadily due to weakened inquiries from overseas markets, especially from the APAC region, including China. The subdued market trading atmosphere, influenced by higher stockpiles among Stuckists and the recent harvesting of the first peanut crop, supported the higher availability of the upstream peanuts. However, the with steady drop in demand side the overall market transaction continued to lean on the southerly side. While, moving into May 2024, downstream traders experienced a steady upward trend with moderate supplies among downstream suppliers. Export businesses from key importing nations also support the current trend, reinforcing prices and market stability with traders actively focused on their trading sentiments. Moreover, the rise in other edible oil prices, such as sunflower oil, also contributed to the increase in peanut oil prices during this period. Additionally, rising global freight rates kept overall trades of peanut oil from Brazil on the higher side, benefiting Brazilian market players who traded their commodities at higher costs. However, as June commenced, market sentiments reversed. The export prices of peanut oil from Brazil declined again due to reduced inquiries from overseas markets, particularly from the APAC region, including China. The demand for peanut oil appeared relatively weak or stagnant, especially in key importing regions like Asia-Pacific and resulting in a need-based purchasing approach. This cautious approach from downstream industries led to a buildup of peanut oil supplies among merchants, indicating a mismatch between supply and demand dynamics. Traders focused on reducing their inventories to prevent further stockpiling. Overall, Q2 2024 for the South American peanut oil market was marked by fluctuating prices influenced by global market dynamics, supply chain factors, and changing demand patterns, with a notable downward trend by the quarter's end.
For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, the prices of peanut oil across the North American region followed the market trajectory of exporting nations, particularly South America. The market started at a steady rate with prices rising moderately further demonstrating a sudden drop followed by a stable rising trajectory as March concludes. Initially, modest demand witnessed after the end of the new year breaks supported this trend. Also, currency appreciation further played an important role as the dollar continued to appreciate against exporting nations' currencies. This benefitted the downstream buyers and traders as they focused on accumulating the goods at a lower cost. However, the market witnessed a sudden downward trend as February concluded, This downturn was largely driven by the strategic actions of the USA, a major importer of peanut oil following the market trajectory of exporting nations. The USA adjusted pricing strategies to maintain global competitiveness, which had a ripple effect on the worldwide market, leading to price reductions. Responding to an oversupply, downstream processing enterprises adjusted procurement strategies, further lowering prices. However, March saw an increase in prices due to the rebound demand side followed by the ease in freight cost. This led US market players to resort to bulk orders, further driving up prices with higher import orders. The repercussions of pricing strategies reverberated across the United States, creating a ripple effect that significantly impacted the overall pricing structure of Peanut Oil. The intricate web of interconnected factors, from international demand fluctuations to regional pricing strategies, underscored the complexity of the market dynamics during the fourth quarter of 2023, providing a comprehensive view of the multifaceted forces at play in shaping the trajectory of Peanut Oil prices.
Asia Pacific
In Q1 2024, the Peanut Oil market in the APAC region experienced a negative pricing environment, with prices steadily rising in March 2024, yet still declining by more than 4 percent compared to the previous quarter of the last year. The overall trend for Peanut Oil prices was influenced by various factors. Firstly, the recent market data reveals a significant drop in spot prices, prompting analysts to investigate. One key driver of this decline is the oversupply situation, where sellers outnumber buyers, posing challenges for the peanut industry. The lack of demand, especially for peanut oil, contributes to sustained price falls, shaping market dynamics. Additionally, to address excess supply, traders offered discounts on peanut oil in locations like Gujarat and Ahmedabad, a trend continuing until late February. Compounding the market challenges, the shift towards alternative edible oils, notably sunflower oil, compounds market challenges. This reflects broader dietary changes due to health concerns and culinary preferences, leading to a notable decrease in demand for peanut oil and exacerbating the supply-demand imbalance. Oil mills have responded by discounting existing inventory to stimulate sales and reduce stockpiles, albeit at the cost of profit margins. Despite these efforts, the market continues to face sustained lower prices, underscoring the industry's struggle to find equilibrium amid demand challenges. However, towards the end of Q1, prices stabilized due to moderate regional demand, increased inquiries from trading nations like China post-lunar holidays, and Vietnam's significant importation of peanut oil. Traders responded by intensifying inventory stocking, despite higher costs due to INR depreciation against the dollar, maintaining domestic prices at elevated levels. Overall, the pricing environment for Peanut Oil in Q1 2024 was uncertain, influenced by supply and demand imbalances, shifting consumer preferences, and input cost fluctuations.
Europe
Throughout the entirety of the first quarter of 2024, the European region closely paralleled pricing trends observed in North America, particularly in the United States, displaying a predominantly pessimistic pricing trajectory with modest fluctuations in the first and last months. This pricing dynamic primarily stemmed from the continuous decline in Peanut Oil prices, driven by weakened downstream consumption. However, this reduction in consumer demand was mitigated by the availability of ample inventories that effectively met the existing demand. Domestic acquisitions followed a need-based approach, sustaining trade momentum that, although subdued, maintained a certain level of consistency in the short term as the euro continued to devaluate against the dollar, thereby resulting in regional imports being more expensive in terms of the euro. However, a steady rebound was witnessed at the end of the quarter which was supported by a modest rise in downstream consumption thereby making the imports within the region at a higher cost as the euro continued to devaluate against the dollar.
South America
Throughout the first quarter of 2024, peanut oil prices in South America, particularly in Brazil, experienced a varied trajectory, leaning towards a negative trend overall, with a decline of over 3 percent compared to the previous year's final quarter. Several factors influenced these market dynamics. Starting with January, initially, the prices of peanut oil stabilized, indicating a return to activity in the Peanut Market following a subdued period during Christmas and New Year, which is customary. In January, peanut oil prices initially stabilized after the holiday season. However, challenges in Brazil, including adverse weather conditions like drought and excessive rainfall, have impacted peanut yields for the upcoming harvest. This is expected to result in a shortfall compared to last year, with potential quality concerns. The effects of erratic weather extend to other crops like soybeans and corn, affecting overall availability. Consequently, limited upstream peanut availability has led to a rise in peanut oil prices.
While, in February, there was a notable decline in peanut oil sales from Brazil, supported by reduced overseas purchases. The impact of importing nations on the groundnut oil market was significant, particularly with stagnant or weak demand, influencing overall market dynamics. Despite China's status as a major importer, export demand for groundnut oil remained subdued ahead of the Lunar New Year, leading to temporary shutdowns of manufacturing units and markets, resulting in decreased workforce and downstream buyers. This further contributed to the overall pessimistic market outlook for peanut oils, creating a demand-supply imbalance as merchants had sufficient stock at oil mills ready for export. However, as the quarter progressed, a steady market rebound occurred, bolstered by increased overseas off-takes from China. The reopening of markets post-Lunar New Year and Spring Festival holidays revitalized production activities, introducing fresh inventories and driving up prices as demand surged for bulk inventories internationally.
For the Quarter Ending December 2023
North America
Throughout the entirety of the fourth quarter in 2023, Peanut Oil prices exhibited a persistent downward trend, influenced by a myriad of significant factors that intricately shaped the pricing landscape. The initial catalyst for this decline was the overarching reduction in downstream consumption from the international market, setting the stage for an overall decrease in Peanut Oil prices.
This phenomenon was further compounded by the accumulation of surplus inventory among suppliers in the United States, exerting additional downward pressure on prices and contributing to the ongoing market dynamics. The economic environment during this period was characterized by constraints, driven by uncertainties in the global economy, apprehensions regarding inflation, and the looming possibility of a recession. These macroeconomic factors played a pivotal role in shaping the trajectory of Peanut Oil prices, creating an environment of caution and prudence among market participants. The resulting subdued to moderate demand was marked by careful procurement practices and a noticeable decline in downstream inquiries, further amplifying the nuanced challenges faced by the industry.
Zooming in on the specific market conditions in the USA, projections indicated a sustained decrease in Peanut Oil prices until the culmination of the quarter. This decline was rooted in the intricate interplay of global market dynamics, with the USA, as a major importer, being intricately connected to and influenced by trends in key exporting nations. One of the primary contributors to this price drop was the substantial reduction in prices observed in key South American provinces, which hold a pivotal role in the broader Peanut Oil market. The repercussions of Brazil's pricing strategies reverberated across the United States, creating a ripple effect that significantly impacted the overall pricing structure of Peanut Oil. The intricate web of interconnected factors, from international demand fluctuations to regional pricing strategies, underscored the complexity of the market dynamics during the fourth quarter of 2023, providing a comprehensive view of the multifaceted forces at play in shaping the trajectory of Peanut Oil prices.
Asia Pacific
In the APAC region, the fourth quarter of 2023 (Oct-Dec) witnessed significant fluctuations in the pricing of Peanut Oil. Initially, there was a decline in the demand for Peanut Oil due to increased availability and lower prices of alternative edible oils. Secondly, the overall economic slowdown and inflationary pressures affected consumer purchasing power and reduced the consumption of Peanut Oil. Supporting this, the market saw a downward trend in Q4 2023. The arrival of new crop supplies during the harvest season led to increased market availability and a subsequent decrease in prices. Additionally, the influx of inexpensive imported oils, such as palm oil, intensified the competition and further drove down domestic prices. These factors impacted the profitability of local farmers and discouraged investment in the sector. This downward trend was followed until mid-q4-2023. However, as we approached towards the end of the quarter, the prices rebounded considerably across the region. This was attributed to broader inflationary pressures, including increased input costs such as fertilizers and pesticides, which are elevating production expenses for peanut farmers. The overall rise in inflation, especially in food commodities, further impacted household budgets, leading consumers to opt for more affordable cooking oils like groundnut, despite potential price increases, thereby driving its demand. Furthermore, increased international demand such as from countries like China for groundnut seeds is adding strain to domestic supplies. The quarter-ending price of Peanut Oil in India was USD 1912/MT.
Europe
Over the entirety of the fourth quarter in 2023, the European region closely mirrored the pricing trends observed in North America, particularly in the United States, demonstrating a predominantly pessimistic pricing trajectory. This pricing dynamic was primarily attributed to the continuous decline in Peanut Oil prices, a trend fueled by weakened downstream consumption. This reduction in consumer demand was, however, offset by the availability of sufficient inventories that effectively met the existing demand. The pattern of domestic acquisitions reflected a need-based approach, sustaining a trade momentum that, while subdued, managed to maintain a certain level of consistency in the short term. Furthermore, the declining prices of Peanut Oil in Germany were the reduction in prices observed across key exporting nations, with a notable impact originating from South America and others such as the United States as well as provinces that wield significant influence in the Peanut Oil market, keeping the overall market trajectory on the south side.
South America
In the last quarter of 2023 (Q4), the South American peanut oil market experienced a negative trend. Various factors influenced the market, affecting price dynamics. Throughout Q4 2023, there was an oversupply of edible oils in the market, resulting in an excess of peanut oil. This surplus was exacerbated by a consistent decline in both domestic and international demand, leading to a price decrease. Moreover, the strengthening of the Brazilian Real increased export costs, further dampening demand. The consumption of terminal oils, including peanut oil, saw average demand, with bearish factors playing a significant role. Market transactions remained weak throughout the quarter, contributing to a substantial decline in prices. The country also grappled with diminishing factory activity, decreasing exports, and challenging economic conditions. Additionally, in December 2023, vegetable oils were extensively used in India for various purposes, including cooking. However, palm oil and other alternatives like soybean oil proved more cost-effective than peanut oil, emerging as natural substitutes during significant price disparities. The abundant inventory of alternative edible oils offered a readily available and economical choice, causing a decrease in demand for peanut oil. This diminished demand, coupled with the existing supply, exerted downward pressure on peanut oil prices. Consequently, this further contributed to the overall reduction in December's trade activity in Peanut oil, the latest price of Peanut Oil FOB Santos in Brazil at the end of the quarter was USD 1850/MT.
For the Quarter Ending September 2023
North America
During the third quarter, Peanut Oil prices saw an improvement until the middle of the period, but they dropped considerably as September 2023 came to a close. Peanut Oil prices rose from July and continued through August. One of the driving factors behind this increase was the global surge in peanut oil prices in recent months. This rise was influenced by several factors, including reduced production in major exporting countries like Brazil and increased global demand. Refiners also ramped up their purchases in anticipation of demand during upcoming festivals, bolstering the market's upward trajectory for the month. Additionally, the escalating demand for other edible oils, such as palm oil, added pressure to an already limited supply, causing prices to rise. As September 2023 approached, prices experienced a significant decline. This was due to a sudden drop in demand for peanut oil in the exporting market, leading to an increase in the supply of other edible oils like Mustard oil and soybean oil. This surplus supply exerted downward pressure on peanut oil prices.
Asia Pacific
In the APAC region, particularly in the Indian market, the cost of Peanut Oil experienced a notable surge as the third quarter of the year began, maintaining an upward trajectory until August. However, in September 2023, prices plummeted significantly. This surge was influenced by a moderate increase in downstream demand for Indian peanuts, coupled with a scarcity in stock that ensured prices remained high until August. India, being a major exporter of peanuts, sustained high export activity, while the domestic market maintained a balance in overall supply and demand dynamics. Indian traders noted an unprecedented surge in demand, leading to a tightening of supplies and subsequently driving up prices. Furthermore, the Consumer Price Index (CPI), which gauges retail inflation, is anticipated to rise to approximately 7% in July 2023, with a likelihood of inching closer to 7.50%. Additionally, the escalating costs of inputs vital for peanut cultivation, such as fertilizers and insecticides, contributed to the continuous rise in Peanut Oil prices. Notably, the depreciation of the Indian rupee against the US dollar in recent months also played a role in this trend. As the quarter drew to a close, prices across the region dropped again, stabilizing at $1983.71 per metric ton as of September 2023.
Europe
In the third quarter of 2023, Peanut oil prices rose until August and then sharply declined as September came to a close. This increase was driven by a significant surge in demand across the region and a shortage in stock, leading to higher global prices for peanut oil, including in the European market. Additionally, robust purchasing activity persisted in the regional market throughout the month. The global festival season, especially in exporting regions like India, typically begins in August and extends until October. During this period, there is a heightened demand for groundnut oil, as it is a key ingredient in many traditional dishes, further bolstering the ongoing rise in prices. This trend continued until August, sustaining consistent demand and foreign inquiries, resulting in disruptions in the supply chain. However, in September 2023, demand from the downstream sector decreased, leading to an excess of available stockpiles among domestic merchants. This situation was exacerbated by reduced trading in certain agricultural products, including corn, due to weakened regional demand. Consequently, market sentiment remained subdued due to declining buyer demand, sluggish sales from downstream industries, and a lack of new inquiries from both domestic and foreign suppliers.
South America
Throughout the third quarter of 2023, Peanut Oil prices in Brazil experienced a significant upswing in market sentiments. Prices saw a notable increase in the first half of July, bouncing back from their lowest levels since April 2023. This price surge was primarily due to the appreciation of the Brazilian real against the US dollar in July, causing peanut oil prices to rise both regionally and in overseas markets. Additionally, a decrease in supplies within the region led to an international surge in Peanut Oil prices, establishing a sustained higher market trend. Furthermore, the rising input costs, including energy and pesticides/fertilizers, contributed to the ongoing upward trajectory of Peanut Oil prices. Moreover, Brazil's Manufacturing PMI increased to 50.1 from 47.8 the previous month, entering the expansionary range for the first time since October 2022, further fuelling the positive market sentiment in August 2023. Continuing into September 2023, the cost of peanut oil continued to exhibit an optimistic price trend. This was in line with the consistent rise in domestic consumption of peanuts due to higher demand from neighbouring regions, which helped maintain balanced supply-demand dynamics. Also, the Consumer Price Index CPI in Brazil increased to 6700.66 points in September from 6683.28 points in August of 2023. Brazil's annual inflation rate rose to 5.19% in September 2023 from 4.61% the previous month, which was the highest level in seven months but fell short of market expectations of 5.27%.
For the Quarter Ending June 2023
North America
Peanut Oil prices in North America followed the market trends in Europe during Q2 2023. Peanut Oil's prices continued to drop from the beginning of Q2 2023 until June 2023. This persistent weaker market sentiment for Peanut oil was supported by high Peanut oil inventories in the region and ample supply among the domestic merchants. Moreover, weaker trade activity from Brazil, one of the significant exporters of peanut oil, further affected the overall prices of Peanut oil across the North American region. In addition, rising interest rates and higher energy prices had a negative impact on import activities as the production in exporting countries was reduced significantly. Furthermore, n significant changes in refinery inventories also impacted the North American Peanut oil market sentiment, keeping the prices of Peanuts in the southward direction. However, considering the demand side, the weaker consumption across the North American region kept the prices on the lower side, which further propelled the merchants to destock their inventories at lower prices.
Asia Pacific
Across the APAC region, Peanut Oil prices displayed a fragile price trajectory in the Indian market. With the commencement of April 2023, the prices of Peanut oil dropped stably compared to the previous month, as several traders stated that domestic suppliers possessed more than enough inventories that could meet the overall demand within the region fur this month. Also, one of the reasons for May's lower price trend of Peanut Oil is the weakening of global demand due to several factors, such as the increase in the price of other vegetable oils, such as soybean oil. Soybean oil is one of the cheapest and most versatile oils compared to groundnut oil (Peanut Oil). This has had a negative effect on the overall demand for Peanut Oil on the global market resulting in a drop of more than 4 percent. However, as June concludes, the prices for Peanut oil continued to depict its bearish market trend across the Indian market. With this, the prices of Peanut oil in India were assembled at USD 930/MT CFR Shanghai and USD 1887.89/MT Ex-Ahmedabad.
Europe
Throughout the second quarter of 2023, Peanut oil continued to witness a dwindled market sentiment, with a constant decrease in prices. Throughout the second quarter, the prices dropped consistently due to reduced supply from Brazil and Argentina, of the significant exporters and producers of Peanut oil. The European market remained heavily loaded with stocks purchased in the short term to meet the overall domestic inquiries. As the second half of Q2 draws to a close, a few market analysts say that Peanut oil prices continued to decline in June amid high global exportable supplies. Apart from that, according to the Food Price Index of the Food and Agriculture Organization of the United Nations (FAO), which tracks monthly changes in global prices of widely traded food commodities. The FAO's Food Price Index showed that inflation was 122.3% in June, down 1.4% from May and down 23.4% from its peak in March 2022, which further supported the downward price trend for edible oil across the European market.
South America
Peanut oil prices in South America, particularly in Brazil, showed a consistent downward trend throughout Q2 2023. The downward trend was driven by the decreasing export potential in certain European regions and the chronically low global demand. Brazil, one of the world's leading agricultural suppliers, was hit by a historic drought in April, which affected the country's Peanut production as well as its export to other regions. Brazil's domestic production during this historic drought has cut off a vital source of global food security. After the middle of Q2 2023, the entities also cautioned about the reasons for the decline in the supply of oilseeds and the increase in oilseeds availability from the new harvest as a result of the arrival of the harvesting season. The weakening of foreign exchange rates during this month also contributed to the overall market trend for various edible oil, both domestically and internationally. The Black Sea Grain Initiative (SCI) has been at the forefront of the negative mood ever since the crisis in Ukraine began. Overall, consistent weaker inquiries from importing nations coupled with higher supplies among the merchants contributed to the price decrease of Peanut oil, one of the main used vegetable oils throughout this quarter. Peanut Oil prices in June ended at USD 1720/ MT FOB Santos.
For the Quarter Ending March 2023
North America
The price of Peanut Oil increased in the first quarter of 2023 as a result of increased domestic demand in the North American housing and food industries. Prices climbed due to high input costs in the first half of Q1 of 2023 as a result of a shrinking supply and rising demand. Prices rose in tandem with the end-use industries' continually high demand throughout the second half of Q1. Due to the rise in the price of other edible oils, Peanut Oil became a different home oil source in several areas, causing its price to rise as well. Prices rise in the final month of the first quarter due to tighter supply chains and strong demand from downstream industries.
Asia Pacific
The price of Peanut Oil inclined across the Asia Pacific due to the volatile product market dynamics in Q1 2023. The domestic and food sectors are two examples of downstream industries that are increasingly demand-driven. Prices rose at the beginning of the 2023 fourth quarter. The Indonesian government made palm oil easier to obtain, which increased production and lowered the cost of other edible oils, notably Peanut Oil Prices for Peanut Oil and other edible oils increased in the second month of 2023's first quarter as a result of a reduction in supply, which alleviated pressure on their prices. Prices rise in the final month of the first quarter as a result of tighter supply chains and high downstream demand. Towards the end of Q1 2023, the price of Peanut Oil was recorded to be USD 2125.77/MT for FOB Mundra India in March 2023.
Europe
Prices of Peanut Oil increased in the European region in Q1 2023 as a result of rising local demand in the culinary and real estate sectors. Prices increased in the first three months of Q1 as a result of increased demand and decreased supply. Prices increased as a result of rising input costs. Throughout the second half of Q1, prices increased in step with the end-use industries' persistently high demand. The price of Peanut Oil increased as a result of the rise in the cost of other edible oils, which made it a different source of household oil in some regions.
For the Quarter Ending December 2022
North America
The price of peanut oil increased in the fourth quarter of 2022 as a result of increased domestic demand in the North American housing and food industries. Prices climbed due to high input costs in the first half of Q4 of 2022 as a result of a shrinking supply and rising demand. Prices rose in tandem with the end-use industries' continually high demand throughout the second half of Q4. Due to the rise in the price of other edible oils, peanut oil became a different home oil source in several areas, causing its price to rise as well. The price of peanut oil for the USA in December 2022 was reported to be USD /MT toward the conclusion of Q4 2022.
Asia Pacific
The price of peanut oil declined across the Asia Pacific due to the erratic product market dynamics in Q4 2022. The demand-driven nature of the downstream industries, such as the food and housing sectors, is growing. In the early stages of 2022's fourth quarter, prices decreased. The Indonesian government lifted the restriction on palm oil, which led to increased output and lower prices for edible oils. Due to increased supply, which released the pressure on the price of peanut oil and other edible oils, prices fell in the second month of Q4 of 2022. Prices decline in the last month of the fourth quarter as a result of an increase in supply chains and sufficient demand from downstream sectors. Towards the end of Q4 2022, the price of peanut oil was recorded to be USD 1905.87/MT for FOB Mundra India in December 2022.
Europe
Due to rising domestic demand in the food and real estate sectors, peanut oil prices rose in the European region in Q4 2022. In the first three months of Q4 2022, prices climbed because of a rise in demand and a decrease in supply. Because of increasing input costs, prices went up. Prices rose in tandem with the end-use sectors' continually high demand throughout the second part of Q4 of 2022. Due to the rise in the price of other edible oils, peanut oil became a different home oil source in several areas, causing its price to rise as well. Towards the end of Q4 2022, the price of Peanut Oil was recorded to be USD /MT for Germany in September 2022.
For the Quarter Ending September 2022
North America
Due to higher domestic home and food industry demand in North America, the price of peanut oil rose in the third quarter of 2022. Prices rose in the first half of Q3 of 2022 because of declining supply and increasing demand, so the prices increased because of high input prices. In the second half of Q3, prices increased in step with the end-use sectors' persistently high demand. Since peanut oil was a different domestic oil source in various provinces due to the price increase of other edible oils, its price also climbed. Towards the end of Q3 2022, the price of Peanut Oil was recorded to be USD 2143/MT for the USA in September 2022.
Asia Pacific
Throughout the Asia Pacific, the price of peanut oil varied because of the uncertain product market dynamics in Q3 2022. The downstream sectors, such as the food and home sectors, are becoming more demand-driven. The prices rose in the first part of Q3 of 2022. The Indonesian ban on palm oil has resulted in higher pricing for edible oils. Prices dropped in the second month of Q3 of 2022 because of Indonesia's easy ban, and the plentiful supply of palm oil has relieved pressure on the price of peanut oil and other edible oils. Due to a rise in demand from downstream sectors, prices rose in the final month of the third quarter. Towards the end of Q3 2022, the price of Peanut Oil was recorded to be INR 165000/MT for FOB Mundra India in September 2022.
Europe
In the European region, the price of Peanut Oil increased in Q3 2022 due to increasing domestic demand in the food and housing industries. Due to a rise in demand and a decline in supply, prices increased in the first quarter of Q3 2022. Prices increased because of high input prices. In the second half of Q3 of 2022, prices increased in step with persistently high demand from the end-use industries. Since peanut oil was a different domestic oil source in various provinces due to the price increase of other edible oils, its price also climbed. Towards the end of Q3 2022, the price of Peanut Oil was recorded to be USD 2062/MT for Germany in September 2022.
For the Quarter Ending June 2022
North America
In North America, the price of Peanut Oil fluctuated in Q2 of 2022, owing to the increased demand from its domestic household and food industries. In the first half of Q2 of 2022, the prices increased due to an upward trajectory in demand and less supply. The prices were hiked due to high input costs. In the second half of Q2 of 2022, the prices increased with consistent robust demand from the end-use industries. Due to the increase in the price of the other edible oil, the price of Peanut Oil was also increased as it was the alternate source of domestic oil in some parts of the provinces.
Asia Pacific
In the Asia Pacific region, the price of Peanut Oil fluctuated in Q2 of 2022, owing to the unstable market dynamics of the product. In the first half of Q2 of 2022, the prices were increased due to an increase in demand from the downstream industries, including the food and household sectors. The edible oil prices were increased due to the ban sanctioned by Indonesia on Palm Oil. In the second half of Q2 of 2022, the prices decreased due to the ease of ban by Indonesia, and the ample supply of Palm Oil has eased the pressure on Peanut Oil prices and other edible oils.
Europe
In the European region, the price of Peanut Oil fluctuated in Q2 2022 because of rising domestic home and food industry demand. Prices rose in the first part of Q2 2022 as a result of rising demand and decreased supply. High input costs led to a price increase. Prices rose in tandem with consistently strong demand from the end-use sectors in the second half of Q2 of 2022. Due to the increase in the price of the other edible oil, the price of Peanut Oil was also increased as it was the alternate source of domestic oil in some parts of the provinces.
For the Quarter Ending March 2022
North America
In North America, Peanut oil prices fluctuated in the first quarter of 2022, with healthy demand in the region. Due to favorable weather conditions in late December and early January, the harvest was good, which affected the price trend. At the onset of the second half, the prices went up due to the Russia Ukraine invasion leading to port congestion, suspended transportation, and logistics issues. Also, the groundnut seed scarcity negatively impacted the rabi crop. With surging demand from end-user industries, peanut oil prices further increased as the North American region experienced a supply crunch. Towards the end of the quarter, the prices of peanut oil were observed to increase with widening supply-demand gap.
Asia Pacific
In the Asia Pacific region, the peanut oil prices fluctuated drastically in Q1 2022. In the first half of Q1, peanut oil prices were on the lower side due to sufficient supply in the domestic market owing to favorable weather conditions and reduction in import duties. In major exporting countries, the productivity of the feedstock peanut was surplus in the previous quarter, contributing to fall in its prices, globally. At the onset of the second half, peanut oil prices increased significantly due to the Russian Ukraine conflict, which resulted in higher prices by disrupting trade routes and hiking up freight charges amid climate crises. The global increase in edible oil prices led to surging demand for compressed oil. Towards the end of the quarter, peanut oil prices showed an upward trend with positive cost support. Later, the Indonesian government-imposed ban on the export of palm oil, sending big importers like India to scramble for alternatives.
Europe
In the European region, the market of peanut oil experience stable trajectory with sharp surge in the price towards mid quarter. The Russian Ukraine invasion surged the prices of cooking oil globally due to increased freight charges, suspended transportation, and route disruption. Moreover, increasing demand from downstream biofuel industry kept the prices on upward trajectory. Also soaring demand from retailer and restricted supply from producing belts retained the peanut prices higher in the first quarter of 2022. Due to supply-demand imbalance, imports to Italy and Netherlands also affected with supply crunch in the international market.
