As this is the first post on the site, it seems fitting to start with that first love… peanuts.
The current situation in international markets is quite challenging, as it is every year. The Argentine crop, which sets prices for the European market, was nearly excellent this 2024. Prices reached their lowest in March but have since stabilized at around USD/MT 1850 CFR Rotterdam for 38/42 blanched whole kernels.
Several factors contribute to this situation. One them being the considerable issues faced by the Brazilian crop, which saw a volume drop of at least 30%. This left the Argentine origin as the sole offer until at least December 2024.
For the second consecutive year, high international prices have piqued the interest of farmers in countries like China and the United States. This trend is expected to continue in Argentina and Brazil when the time comes. With positive news on the crop evolution in China and the US, countries sourcing from this origins could see some relief during the first half of 2025.
However, there are numerous variables that could influence prices. One major factor is the global inflation experienced during 2021, 2022, 2023, and 2024. Even with a modest 5% annual inflation rate, the new international average price for 38/42 blanched whole peanuts should be above USD 1760 per metric ton.
In conclusion, the market may not be high; it might simply be at a new price frontier.
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