The annual China Peanut Conference was hosted by CNPEANUT.COM in Qingdao, China on July 8, 2022. The conference experts in the field of processing, futures analytics and import and export players, who collectively discussed and analyzed the supply and demand situation of both China and International Peanut markets. Ms. Li Xiue, Chief Commercial Officer of ETG China, gave an overview of China peanut import and export market.

 Export

By May 2022, China exported a total of 172,000 mt peanuts - slightly higher than last year’s volumes, however, lower than previous years. It is expected that the total annual export will remain around 330,000 mt, similar to exported volume in 2021.

 Import

Compared with 2020 and 2021, peanut imports in 2022 dropped significantly. By the end of May 2022, total imports were 290,000 mt and peanut oil imports were 49,000 mts. The main contributor to the lower than normal volumes is record high global vegetable oil prices. In addition, increased demand for peanut and peanut oil at origin countries led to lower exports. Low domestic peanut prices were inconsistent with international prices, affecting margins and incentives of importers.

 Import and Export Outlook

China's peanut export market is still facing major obstacles, including high sea freight, limited raw material and reduced price competitiveness. Import is subject to the origin country’s export policy, political stability, and shipping capacity, which also leads to a fluctuation of annual import volume.  

Presently, planting season in India is delayed by about 15 days compared with last year, and the planting area is expected to decrease by 15%. The main planting competition comes from cotton and soybeans. With general elections this year, the Indian government will likely support the market to gain farmers’ backing. According to estimates, planting area in US is down 5-12%. The peanut output in Brazil increased slightly in May 2022, about 680,000 mts of peanut kernels, including 260,000 mts of oil plants, equating to an approximate 100,000 mts of peanut oil. The high stock balance was mainly due to weak demand from Ukraine and Russia. Due to the impact of frost in Argentina, the output reduced to around 890,000 mt in the 2022 season, including 175,000 mts of oil plants (approximately 70,000 mts of peanut oil). In Sudan and Senegal, 80-90% of planting has been completed and the planting area is expected to decrease slightly with an approximate 10%.

These statements made and forward looking views expressed in this presentation are merely for analysis of the market. These are not trading recommendations.