The Chinese peanut traders still hold a considerable quantity of the 2017 crop in the cold storage (bigger amount than the same period last year), and a majority of the buyers prefer to wait for the new crop.

We are now in August, the Chinese new crop will slowly enter the market. At this moment, only a small quantity is available and the price are quite inconsistent due to the big quality difference. In a few weeks, the largest peanut production province “Henan” will start harvesting and this is important in the price level for the 2018 crop.

In northeast area, where a big part of peanuts for export to EU are planted, the draught weather continues. Suppliers are very cautious with making offers for the new crop, especially the Hsuji type and red skins. These varieties were already reported to have close to 30% less planting area. If the dry weather over there persists, no one knows what the price for the new crop will be.  

At this stage, we expect the price for the new crop will start at relative lower level (could still be significantly higher than the old crop), and slowly increases after the big buyers (oil crushers) have finished their stock and enter the market again.