Image: Melinda Rodrigues | Source: Aboissa
On September 8th and 9th, Aboissa participated in the ”World Peanut Meeting”, the world peanut meeting, organized by the Peanut Chamber of Argentina. The event virtually brought together several global industry leaders to discuss the supply and demand scenario, as well as market trends.
Check out the interview below with our Peanut Oil specialist, Melinda Rodrigues, who represented us at this important event:
Aboissa: What were the “hot topics” of the event?
Melinda: Without a doubt, one of the main themes was the crisis in international logistics. Not only in Brazil, but in several exporting countries, the increase in freight rates, the shortage of containers and the lack of space on ships are already reflected in export numbers. According to industry forecasts, this year Brazil should export 220 to 230 thousand tons of peanuts, showing a drop compared to the previous year. Aboissa: We know that Brazil is going through one of the worst droughts ever seen. What are the chances of impacts on the next harvest?
Melinda: In a way, it is already impacting planting, but rain is expected for the next 10 days. La Niña will continue to be a point of attention to be monitored.
Aboissa: How is the supply scenario in producing countries?
Melinda: According to the data presented, we can conclude that there is enough supply. The big question is being able to board. This is why we have recommended to our customers that they do not wait until the last minute to make purchases, that they plan their purchase orders in advance, aligning their boarding expectations.
Regarding supply, another point is that almost all origins have high planting costs, which could affect intentions for the 2021/22 harvest.
Aboissa: What about the demand scenario?
Melinda: In recent times, we are seeing the demand for peanuts and their derivatives grow in several countries. In addition to the United States, India is a good example. I wouldn't be surprised if in a few years it becomes an importer rather than an exporter, given its robust local market.
However, it is China that continues to be the main producer and consumer of peanuts in the world and the main driver of prices, which is why we continue to keep an eye on this market, in particular, where more than half of the peanuts are destined for the manufacture of oil. After oil prices reached records last year, this year the market is seeking balance, with a scenario of lower prices and buyers focusing on spot lots rather than schedules.
For more information, quotes or questions, be sure to get in touch With our team, we are ready to serve you through our communication channels.
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