Shipping, a spoiler in the peanut market

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A few weeks before the peanut season starts, the market hesitates. Prices fall between falling Chinese demand and a shortage of containers that weigh transport.

If you are a fan of mafia or simple peanut sandwich, do not worry, the year should be good. But it is difficult to say at what cost.

The next world mass season, which starts in a few weeks, promises to be very satisfying among the most important producers in Argentina, the USA, Brazil and India.

A plentiful supply, in theory proclaims lower prices. Especially since the Asian market is slowing down: China has large stocks of peanuts and buys less than usual.

But in this surrounding calm, it was necessary to have a spoilsport and we have to look for it on the logistics side.

Lack of containers disrupts the marketFirst and foremost, it is the price of transport, which has soared, but above all a problem with the availability of the container. “This is the factor that is likely to tighten the market in the coming months,” explains agricultural expert François Griffon, an analyst for the agricultural information service N’kalo. And this worries exporters, who have to respect their contracts.

On the African continent, three main countries are at risk of being affected by this context: Senegal, Sudan and South Africa, as they are the only ones with visibility in the international market in the peanut sector. Elsewhere, the cultivation is intended for the local market, where fresh, barely harvested peanuts are already consumed. These three countries will therefore be directly affected by the lack of containers transiting mainly on the Asia / Europe routes or on the Asia / America routes.

Chinese demand uncertain about this campaign If Chinese demand does not wake up by 2022, they are also likely to see their export revenues fall, with China as their main buyer.

For African oil farms, this is pretty good news, as the raw materials are not going to run out, unlike the two previous years.

Provided that local production is there. In Senegal in particular, the supply of fertilizers has been difficult in recent months and it is not excluded that the harvest will decrease, despite fairly stable growing areas.

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