For the Quarter Ending September 2025
North America
• In North America, peanut oil market conditions were shaped by stable domestic consumption and lower farmer selling, which tightened raw peanut availability.
• Holiday-season procurement contributed to consistent buying interest from food processors and foodservice operators.
• Procurement behavior followed broader vegetable oil dynamics, as buyers assessed relative competitiveness against soybean and canola oils.
• Production Cost Trend rose modestly as processors faced elevated energy and labor expenses.
• Demand Outlook stayed strong in the foodservice sector, especially in frying and specialty applications.
• Increased reliance on refined peanut oil imports helped balance temporary supply gaps.
• The Price Forecast suggests moderate upward pressure if harvest-time weather disruptions persist.
Why Did the Peanut Oil Market Shift in September 2025 in North America?
• Lower farmer selling and weather-related yield issues constrained raw peanut availability.
• Higher energy and processing inputs increased operational costs.
• Strong holiday-season demand from foodservice operators influenced procurement volumes.
Europe
• In Europe, market conditions were influenced by higher import costs and currency movements affecting procurement decisions.
• Importers faced tighter availability from key suppliers in Asia and Africa due to logistical slowdowns.
• Substitution effects from sunflower and rapeseed oil markets shaped purchasing strategies across food manufacturers.
• Production Cost Trend increased for refiners due to elevated energy costs and processing overheads.
• Demand Outlook remained steady, driven by bakery, confectionery, and specialty culinary sectors.
• Import delays and rising freight rates constrained short-term supplies within the bloc.
• The Price Forecast points to continued upward pressure if freight and energy markets remain firm.
Why Did the Peanut Oil Market Shift in September 2025 in Europe?
• Higher import and freight costs limited availability from major origins.
• Elevated industrial energy expenses increased refining costs.
• Reduced export flows from traditional suppliers caused tighter European inventories.
APAC
• In India, the Peanut Oil Price Index rose by 2.86% QoQ, reflecting tighter domestic procurement.
• The average Peanut Oil price for the quarter was USD 1615.93/MT, supporting margins locally.
• Peanut Oil Spot Price strengthened as processors raised bids amid limited kernel availability.
• Price Index movements tracked broader edible oil markets, with regional parity shaping trade flows.
• Production Cost Trend increased due to higher crushing and packaging expenses.
• Demand Outlook remained firm in household consumption, with seasonal industrial usage improving.
• Export demand and port congestion supported offers, lifting spot prices at loading points.
• Price Forecast highlights upside risks if export enquiries persist and domestic supplies tighten.
Why Did the Price of Peanut Oil Change in September 2025 in APAC?
• Domestic kernel shortages reduced processing throughput, tightening supply.
• Higher crushing and freight costs elevated production breakevens.
• Logistical delays and stronger export enquiries tightened effective availability, amplifying volatility.
South America
• In Brazil, the Peanut Oil Price Index fell by 4.39% QoQ as export demand softened.
• The average Peanut Oil price was USD 1598.33/MT, based on FOB Santos assessments.
• Spot prices saw limited upside as crushing margins compressed and competition increased.
• Price Forecast remains cautious amid weak export interest and ample regional supplies.
• Production Cost Trend edged lower with easing raw peanut prices.
• Demand Outlook weakened across edible oil and biodiesel segments amid slower consumer purchasing.
• Rising inventories and subdued export enquiries constrained price recovery.
• Logistics disruptions at Santos port affected shipments, influencing short-term price direction.
Why Did the Price of Peanut Oil Change in September 2025 in South America?
• Higher local peanut availability and competition from Argentina pressured prices.
• Lower farmgate prices reduced processing costs, weighing on margins and quotations.
• Port congestion delayed shipments, softening export demand and limiting price rebound.
For the Quarter Ending March 2025
North America
In Q1 2025, the North American Peanut Oil market experienced fluctuating prices, shaped by varying supply-side conditions, demand shifts, and broader economic factors. January started with higher prices due to lingering supply chain disruptions from late 2024, compounded by weather-related challenges in key production areas. Elevated demand from the food and biofuel sectors, coupled with limited availability, created a tight market, contributing to upward pricing pressure.
February saw a correction in prices as logistical challenges eased and some production bottlenecks were resolved. More consistent supply and improved shipping efficiency provided some relief to the market, though fluctuating demand patterns from downstream industries kept prices in check. Currency fluctuations and mixed export pricing from key origin markets also played a role in maintaining market volatility, requiring buyers to adjust their purchasing strategies accordingly.
By March, pricing variability continued as market conditions remained fluid. A slowdown in demand from non-essential sectors, along with fluctuating spot buying activity, created uncertainty. However, improved shipping capacity and more favorable freight rates from exporting regions helped reduce landed costs. Despite this, ongoing weather concerns and geopolitical trade factors kept the market cautious, leading to fluctuating price movements. Overall, Q1 2025 in the North American Peanut Oil market reflected a period of volatility, with supply-side recovery, shifting demand, and macroeconomic factors driving pricing dynamics throughout the quarter.
Asia Pacific
In Q1 2025, the Indian Peanut Oil market exhibited fluctuating pricing trends due to varying supply-demand dynamics, with January marked by downward pressure and February seeing a significant uptick, followed by a price decline in March.
In January, the market continued its downward trend, driven by an oversupply of peanuts, weak export demand, and competition from other edible oils like palm and soybean. The record-breaking production in Gujarat contributed to a glut, further depressing peanut oil prices. Additionally, sluggish domestic demand from the food processing sector, combined with a depreciating INR and high import volumes, exacerbated the pricing pressures. As a result, the market saw rising inventories, putting financial strain on farmers and reinforcing the need for export diversification and enhanced domestic consumption strategies.
February witnessed a sharp reversal in price trends, with prices rising due to reduced peanut availability and delayed harvests, further compounded by strong demand from the food and healthcare sectors. However, the decline in India’s Manufacturing PMI indicated slower industrial activity, which limited production levels and intensified supply constraints. Meanwhile, volatility in the edible oil market, particularly in sunflower and palm oils, indirectly benefited Indian peanut oil, supporting price hikes.
In March, the market saw a price drop, attributed to improved supply conditions. Gujarat's large-scale peanut auctions and the expected strong harvest in Tamil Nadu boosted availability, while subdued domestic demand from processing units and a shift in focus toward exports kept domestic prices under pressure. The weaker consumption amidst rising exports reflected the growing divergence between international and local demand, with Indian manufacturers capitalizing on higher export demand due to a stronger rupee.
Europe
The European Peanut Oil market experienced significant price fluctuations throughout Q1 2025, influenced by a combination of supply-side factors and shifting demand dynamics. January saw a notable uptick in prices due to weather-related disruptions in key production regions, alongside tightening supply chains. Rising freight rates added further upward pressure on import prices. Strong demand from the food processing and biofuel sectors compounded the tight supply, resulting in higher procurement costs for European buyers.
In February, the market shifted as freight rates softened and supply conditions began to stabilize. A slight easing in production constraints and more competitive pricing from origin markets led to some relief in overall market costs. However, subdued industrial activity and cautious purchasing by end-users, influenced by lingering inflationary pressures, kept demand from outpacing supply. This created a more balanced market environment, with prices correcting from earlier highs.
By March, prices fluctuated once more due to renewed concerns about global supply conditions and cost increases in origin markets. Supply tightness persisted, leading to firmer export offers. At the same time, demand from food processors remained steady, supported by the gradual improvement in economic indicators and easing inflation. As a result, prices saw upward momentum toward the end of the quarter, reflecting the ongoing volatility in supply chains and buyer interest. Throughout Q1 2025, the European Peanut Oil market navigated through a period of fluctuating pricing, marked by supply constraints, shifting demand, and changing cost dynamics.
South America
In Q1 2025, the Brazilian Peanut Oil market exhibited significant price fluctuations, with January marked by a noticeable decline followed by price increases in February and March due to shifting supply-demand dynamics.
In January, the price of peanut oil in Brazil fell due to a surge in peanut production, which was expected to increase by 46.6% to approximately 1.07 million tons for the 2024/25 season. This increase in output led to an oversupply in both domestic and international markets, driving prices downward. Favorable weather conditions, including late-season rainfall, improved crop yields and quality, stabilizing supply levels. However, strong harvests in other peanut oil-producing countries like Argentina and India contributed to global market saturation, intensifying competition. As a result, the Brazilian peanut oil market became more affordable for international buyers.
February saw a slight price increase, primarily due to a supply-demand imbalance driven by a reduction in available peanuts, as previous stocks were depleted, and the new harvest was delayed. Inflationary pressures and global edible oil market volatility further influenced pricing. Strong demand from the food and personal care sectors, along with expanding industrial activity, exerted additional pressure on the domestic market.
In March, a further slight price increase occurred, driven by tight supply conditions due to depleted stocks and delayed harvests. Inflation surged to 5.48%, raising production and logistics costs. Continued demand from the food and personal care sectors, coupled with a rise in international demand due to global market instability, contributed to the upward price trend. These dynamics maintained firm pricing for Brazilian peanut oil through March.
For the Quarter Ending December 2024
North America
During the entire fourth quarter of 2024, the U.S. peanut and peanut oil markets encountered notable price pressures amidst global competition and shifting demand dynamics. Competitive pricing from major producers such as India and Argentina challenged U.S. export performance, despite stable domestic demand driven by the snack and oil sectors.
The seasonal harvest yielded ample supplies, contributing to downward pressure on prices as oversupply concerns emerged. Rising imports of alternative edible oils further weighed on the market, while stringent aflatoxin standards added complexities for exporters. Manufacturing activity reflected a decelerating trend, with the U.S. PMI moderating from earlier peaks, indicating narrowing profit margins and higher inflationary pressures on production.
Freight cost stabilization partially alleviated logistical challenges, but global competition and reduced purchasing power in key export markets curtailed growth opportunities. These conditions highlighted the need for strategic market positioning, cost optimization, and diversification of both domestic applications and export channels to sustain competitiveness amidst evolving global trade dynamics.
Asia Pacific
During the entire Q4 2024, the Indian peanut market demonstrated mixed dynamics, initially stabilizing in October due to favorable weather and a record harvest. Fresh supplies softened prices, while strong domestic demand, fueled by the festive season and robust consumption in snacks and oil sectors, provided upward pressure. Export demand, particularly to Southeast Asia and China, grew but faced challenges from competitive pricing by the U.S. and Argentina. By December, prices experienced a significant decline as Gujarat’s record production of 4.2 million metric tons led to oversupply. High imports of edible oils, stringent aflatoxin standards, and reduced global purchases compounded challenges, pressuring farmers with diminishing returns and emphasizing the need for export diversification and expanded domestic uses. Additionally, India’s manufacturing sector showed resilience early in the quarter, with the PMI rising to 57.5 in October, reflecting strong demand and international sales. However, growth momentum weakened by December, with the PMI dropping to 56.4 due to competitive pressures and inflationary costs. Stabilizing raw material prices and narrowing profit margins restricted production expansion. These conditions highlight the need for strategic cost management and diversification to balance market imbalances and sustain competitiveness in both agricultural and industrial sectors.
Europe
In the fourth quarter of 2024, the European peanut oil market faced a weakened trend driven by several global and regional factors. Competitive export pricing from major producers like Brazil, Argentina, and Asian nations exerted downward pressure on European imports, as lower-cost alternatives flooded the market. Additionally, the oversupply of peanuts globally, resulting from abundant harvests in key producing countries, further reduced raw material costs for peanut oil, which translated to declining prices in Europe. Weak domestic demand in the European market, influenced by economic challenges and a consumer preference shift toward cheaper vegetable oils, compounded the downward price trend. The global surplus of alternative edible oils, particularly palm and soybean oils, intensified competition and eroded market confidence. Exchange rate fluctuations, logistical improvements, and reduced freight costs supported import activity but did little to counteract the prevailing bearish sentiment. Overall, the European peanut oil market saw subdued performance, influenced by global oversupply, lower international pricing, and soft regional demand.
South America
In the fourth quarter of 2024, Brazilian peanut oil prices experienced a consistent decline, driven by several interrelated factors. October marked a significant reduction in export prices, primarily influenced by competitive pricing pressures from Asian peanut-producing nations and improved weather conditions in South America, which bolstered crop yields and stabilized production volumes. Exchange rate fluctuations and freight costs further shaped Brazil’s global competitiveness. Manufacturing PMI in Brazil eased slightly to 52.9 in October, with robust growth in output and new orders, albeit at a slower pace, supported by strong international demand from regions like Africa, Japan, and the Americas. By November, an abundant peanut harvest in Brazil exacerbated supply-side pressures, leading to oversupply and inventory buildup, which forced producers to reduce prices. Domestic demand for peanut oil weakened due to an economic slowdown, a consumer shift toward cheaper vegetable oils, and reduced purchasing power, while stiff competition from India added export challenges. The depreciation of the Brazilian real supported export competitiveness but contributed to lower domestic returns. December saw a further price drop as surplus production, declining global edible oil prices, and competition from major producers like Argentina and India pressured the market. Additionally, logistical improvements and reduced freight costs stimulated export activity but failed to counterbalance the downward trend. The combined impact of these factors, alongside potential government interventions, underscored the decline in Brazilian peanut oil prices throughout the quarter.
For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American peanut oil market faced significant impacts from the declining prices observed in the South American region, particularly Brazil. The notable oversupply of peanuts, coupled with weakened demand and heightened competition among major producers, led to a bearish market sentiment that reverberated across North America. Initially, North American exporters benefited from higher export prices due to favorable international quotations; however, as Brazilian prices plummeted, pressure mounted on North American prices, compelling them to adjust downwards to maintain competitiveness. The processing sector in North America also felt the effects, as the influx of lower-priced peanut oil from South America forced processors to reconsider their pricing strategies amid rising production costs driven by inferior-quality crops.
Additionally, reduced inquiries from key end-users further contributed to a decrease in demand for North American peanut oil. By the end of the quarter, while there was some stabilization in prices as the supply-demand scenario improved, the overall market turnover remained cautious, with stakeholders adapting to the prevailing conditions driven by global supply dynamics and shifting consumer expectations.
Asia Pacific
Moving into the third quarter of 2024, the Asia-Pacific (APAC) region experienced a significant downturn in peanut oil prices, with India facing the most pronounced fluctuations. Prices surged substantially until mid-quarter but then dropped sharply as September began. Up until August, the market exhibited a steady upward trajectory, characterized by a consistent rise in inquiries within the regional sector. Strong demand from key industries, particularly food processing, kept procurement levels elevated, with manufacturing entities operating at high capacity to meet this demand. However, rising energy costs hindered their ability to scale production effectively.
Compounding these dynamics was a disruption in weather patterns affecting the winter sowing of peanuts in India, which raised concerns about potential supply shortages and sustained higher prices for the commodity. Reports indicated crop damage in certain areas due to heavy rainfall, adversely impacting overall production and contributing to elevated price levels. Traders, anticipating sustained demand, strategically liquidated inventories from 2023 at premium prices, which supported the price rise throughout August. However, a significant decline in prices occurred by the end of September 2024, driven by reduced quotations from end-users. Despite sufficient availability of peanut oil to meet industrial demands, domestic factors, including recent harvest patterns and crop yields, influenced market dynamics. Early estimates indicated that the peanut harvest would be lower than initially anticipated, but supply was expected to increase substantially post-mid-October as peak arrivals of both Bold and Java varieties commenced. Recent rainfall may have lowered the quality of early-harvested peanuts, potentially increasing the volume available for oil extraction. Overall, the trading environment for peanut oil remained subdued throughout the quarter, culminating in a notable price drop by the end of September.
Europe
In the third quarter of 2024, the European region continued to follow the market trend of key producing nations including the South American region. The oversupply of peanuts, coupled with weakened demand and increased competition from major producers, created a ripple effect that impacted European importers and traders. Initially, the quarter began with rising import prices, bolstered by favorable international quotations. However, as the quarter progressed, prices fell sharply due to reduced inquiries from the regional market. While this declining price provided a short-term benefit to consumers and food manufacturers reliant on peanut oil, lower costs for imports translated into reduced production expenses. However, the volatility in supply dynamics and concerns over the quality of peanuts from regions like India and Brazil contributed to uncertainty in the market. This situation was further exacerbated by regional factors such as fluctuating energy costs and adverse weather conditions affecting peanut crops, which raised concerns about future supply stability. As a result, while the price drops initially appeared advantageous, they masked underlying supply chain challenges that could affect European market dynamics moving forward. Overall, the third quarter concluded with a bearish sentiment, similar to that of other nations.
