PEANUT MARKETING NEWS – May 1, 2021 – Tyron Spearman, Editor (50)

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On April 1, 2021, Japan’s Ministry of Health, Labor and Welfare (MHLW) suspended a mandatory aflatoxin inspection
regime imposed on walnuts from the US and other exporting countries. The suspension marks the first time Japan lifted a 100 percent
inspection requirement for aflatoxin vulnerable imports since 2004 when the current monitoring plan was implemented. In 2020, the
United States exported $114 million of walnuts to Japan. Could peanuts be next?
CHINA PEANUT PICTURE - THE STRONG DEMAND FROM CHINA FOR EDIBLE, OIL CRUSHING
PEANUTS & PEANUT OIL IS SETTING A FLOOR ON WORLD PEANUT MARKET. Daily delivered volumes are significantly
reduced to reflect position of crushing plants. It is understood that crushing plants are well covered or are not in a hurry to buy with
increased imported peanuts. The Chinese government is emphasizing ‘FOOD SAFETY’, and farmers will be encouraged to plant
wheat and maize instead of others crops like peanuts, but a decrease in peanut planting may not happens due to land rotation and water
supply.
The high price of Chinese peanut has resulted in slow sales of export, which was helped by the expensive sea freight market.
World Demand for Chinese peanuts is mainly focused on Virginia raw and blanched, some red skins. Hsujis are mainly for local
demand, as it is too expensive comparing with other origins.
Chinese Plant oil prices rebound, pressing profit of oil factories has increased. Peanut oil prices are stable. All the oil
factories have entered the market to purchase, operation rate is improved and oil plants raised purchase standards.
ARGENTINA CROP REPORT – USDA - ARGENTINA expects to lower exports 14%, The weather has caused a 30-day delay. The
current maturity of peanuts reaches 35-40%, well below normal values, due to the climatic conditions during its evolution!
Most farmers remain expectant and continue waiting a few days to allow the lots to reach a higher state of maturity to start the digging
and thus, their peanuts add and they can improve the yields and the quality of the harvested peanuts
The short-cycle peanut varieties, have reached a very adequate degree of maturity. It is expected a yield of between 3 and 3.2
MT/Ha. In absolute values, USDA reports it is expected a production of 909,997 MT of peanut kernels, which means 66,378 tons less
and a decrease of 13.59% in the exportable volume.
PEANUT STOCKS AND PROCESSING REPORT– USDA’s Peanut Stocks and Processing Report was released April 26, 2021
for the month of March 2021, the 8th month of the marketing year.
Peanut stocks in commercial storage as of March 31, 2021 totaled 3.55 billion pounds equivalent farmer stock, compared to
3.64 billion pounds last year, DOWN 2.5%. Total includes 2.77 billion pounds of farmer stock, down 5.1%.
Shelled peanuts on hand farmer stock equivalent totaled 756 million pounds, down 1.6%. Roasted stocks were 26.9
million pounds, down 12.9% from last year.
Total shelled peanut stocks showed 568 million pounds, DOWN 1.6% with edible grades totaling 545 million pounds, UP
3.8%. Oil stocks totaled 23.3 million pounds, DOWN 32.6% from one year ago.
Edible stocks of shelled peanuts by type, Virginia & Valencia stocks are at 71.9 million pounds, 21.2% more than last year.
Runners were 428 million pounds, UP 9.7% and Spanish totaled 45.6 million lbs, UP 5.5% from same month last year.
In March, shellers milled 461 million pounds, 13%% MORE than March last year.
Commercial processors used 216 million pounds of shelled edible peanuts, 5.4% more than last March.
Government purchases for Nutrition Programs were UP 165% in Mar. vs Mar. last year. For the 8-month period,
government purchases are down 31.1%.
Month (1000 #) Peanut candy Snack peanuts Peanut butter Total edibles In-shell P'nuts
Aug/Mar 2020/21 268,063 338,130 960,862 1,615,224 93,092
Aug/Mar 2019/20 249,284 322,155 922,142 1,560,370 94,996
UP + 7.5% UP + 4.9% UP + 4.2 % UP + 3.5 % DOWN – 2.0 %
Mar 21 vs Mar 20 UP + 4.2% UP + 1.8% UP + 5.9% UP + 3.9% DOWN – 14.2%
U.S. peanut usage for March is UP 3.9% compared to March 2020. Categories show positive increases except In-shells,
down 14.2%. For the 8-month period, peanut usage is up 3.5% with peanuts in candy up 7.5%, peanut snacks up
4.9% and peanut butter maintaining volume, up 4.2%. Stocks and Processing Report had estimated a 3.3% increase
in domestic food use.