Weekly Review-Peanuts

01-Feb-2025 08:05 PM

Peanut oil prices soften due to weak demand

It looks like the peanut market is seeing some interesting shifts, with prices softening due to weak demand despite a strong arrival of new Kharif season peanuts.

The ongoing recession in the edible oil sector seems to be affecting prices across the board, especially in peanut oil and deoiled cake (DOC).

In the week of 25-31 January, significant arrivals were seen in key markets like Gondal, Rajkot, and Uttar Pradesh, though prices in most areas softened by Rs 50-100. In Jhansi, however, lower prices led to some buying activity, giving a slight boost of Rs 100.

Despite these fluctuations, peanuts in UP are still running below the government’s support price, which indicates potential concerns for farmers there.

When it comes to groundnut kernels, demand has remained weak, with prices falling in Solapur and seeing only slight increases in Nagpur.

This lack of strong demand from crushers, processors, and exporters is keeping price stability, or in some cases, downward movement, as seen in the 50-60 and 60-70 count categories in Solapur.

For groundnut oil, there’s a noticeable dip in prices, with refined groundnut oil seeing a drop of Rs 20-50 per 10 kg, and filtered oil also softening by Rs 30-50 per 10 kg.

While the price of refined oil did see an increase in Ahmedabad, overall, limited trading and lower demand seem to be putting downward pressure on prices.

Seems like the market is stuck in a bit of a lull with weak demand and softening prices. What are your thoughts on how this will impact peanut growers and the oil industry in the coming weeks?