For the Quarter Ending June 2023
North America
Peanut Oil prices in North America followed the market trends in Europe during Q2 2023. Peanut Oil's prices continued to drop from the beginning of Q2 2023 until June 2023. This persistent weaker market sentiment for Peanut oil was supported by high Peanut oil inventories in the region and ample supply among the domestic merchants. Moreover, weaker trade activity from Brazil, one of the significant exporters of peanut oil, further affected the overall prices of Peanut oil across the North American region. In addition, rising interest rates and higher energy prices had a negative impact on import activities as the production in exporting countries was reduced significantly. Furthermore, n significant changes in refinery inventories also impacted the North American Peanut oil market sentiment, keeping the prices of Peanuts in the southward direction. However, considering the demand side, the weaker consumption across the North American region kept the prices on the lower side, which further propelled the merchants to destock their inventories at lower prices.
Asia Pacific
Across the APAC region, Peanut Oil prices displayed a fragile price trajectory in the Indian market. With the commencement of April 2023, the prices of Peanut oil dropped stably compared to the previous month, as several traders stated that domestic suppliers possessed more than enough inventories that could meet the overall demand within the region fur this month. Also, one of the reasons for May's lower price trend of Peanut Oil is the weakening of global demand due to several factors, such as the increase in the price of other vegetable oils, such as soybean oil. Soybean oil is one of the cheapest and most versatile oils compared to groundnut oil (Peanut Oil). This has had a negative effect on the overall demand for Peanut Oil on the global market resulting in a drop of more than 4 percent. However, as June concludes, the prices for Peanut oil continued to depict its bearish market trend across the Indian market. With this, the prices of Peanut oil in India were assembled at USD 930/MT CFR Shanghai and USD 1887.89/MT Ex-Ahmedabad.
Europe
Throughout the second quarter of 2023, Peanut oil continued to witness a dwindled market sentiment, with a constant decrease in prices. Throughout the second quarter, the prices dropped consistently due to reduced supply from Brazil and Argentina, of the significant exporters and producers of Peanut oil. The European market remained heavily loaded with stocks purchased in the short term to meet the overall domestic inquiries. As the second half of Q2 draws to a close, a few market analysts say that Peanut oil prices continued to decline in June amid high global exportable supplies. Apart from that, according to the Food Price Index of the Food and Agriculture Organization of the United Nations (FAO), which tracks monthly changes in global prices of widely traded food commodities. The FAO's Food Price Index showed that inflation was 122.3% in June, down 1.4% from May and down 23.4% from its peak in March 2022, which further supported the downward price trend for edible oil across the European market.
South America
Peanut oil prices in South America, particularly in Brazil, showed a consistent downward trend throughout Q2 2023. The downward trend was driven by the decreasing export potential in certain European regions and the chronically low global demand. Brazil, one of the world's leading agricultural suppliers, was hit by a historic drought in April, which affected the country's Peanut production as well as its export to other regions. Brazil's domestic production during this historic drought has cut off a vital source of global food security. After the middle of Q2 2023, the entities also cautioned about the reasons for the decline in the supply of oilseeds and the increase in oilseeds availability from the new harvest as a result of the arrival of the harvesting season. The weakening of foreign exchange rates during this month also contributed to the overall market trend for various edible oil, both domestically and internationally. The Black Sea Grain Initiative (SCI) has been at the forefront of the negative mood ever since the crisis in Ukraine began. Overall, consistent weaker inquiries from importing nations coupled with higher supplies among the merchants contributed to the price decrease of Peanut oil, one of the main used vegetable oils throughout this quarter. Peanut Oil prices in June ended at USD 1720/ MT FOB Santos.
For the Quarter Ending March 2023
North America
The price of Peanut Oil increased in the first quarter of 2023 as a result of increased domestic demand in the North American housing and food industries. Prices climbed due to high input costs in the first half of Q1 of 2023 as a result of a shrinking supply and rising demand. Prices rose in tandem with the end-use industries' continually high demand throughout the second half of Q1. Due to the rise in the price of other edible oils, Peanut Oil became a different home oil source in several areas, causing its price to rise as well. Prices rise in the final month of the first quarter due to tighter supply chains and strong demand from downstream industries.
Asia Pacific
The price of Peanut Oil inclined across the Asia Pacific due to the volatile product market dynamics in Q1 2023. The domestic and food sectors are two examples of downstream industries that are increasingly demand-driven. Prices rose at the beginning of the 2023 fourth quarter. The Indonesian government made palm oil easier to obtain, which increased production and lowered the cost of other edible oils, notably Peanut Oil Prices for Peanut Oil and other edible oils increased in the second month of 2023's first quarter as a result of a reduction in supply, which alleviated pressure on their prices. Prices rise in the final month of the first quarter as a result of tighter supply chains and high downstream demand. Towards the end of Q1 2023, the price of Peanut Oil was recorded to be USD 2125.77/MT for FOB Mundra India in March 2023.
Europe
Prices of Peanut Oil increased in the European region in Q1 2023 as a result of rising local demand in the culinary and real estate sectors. Prices increased in the first three months of Q1 as a result of increased demand and decreased supply. Prices increased as a result of rising input costs. Throughout the second half of Q1, prices increased in step with the end-use industries' persistently high demand. The price of Peanut Oil increased as a result of the rise in the cost of other edible oils, which made it a different source of household oil in some regions.
For the Quarter Ending December 2022
North America
The price of peanut oil increased in the fourth quarter of 2022 as a result of increased domestic demand in the North American housing and food industries. Prices climbed due to high input costs in the first half of Q4 of 2022 as a result of a shrinking supply and rising demand. Prices rose in tandem with the end-use industries' continually high demand throughout the second half of Q4. Due to the rise in the price of other edible oils, peanut oil became a different home oil source in several areas, causing its price to rise as well. The price of peanut oil for the USA in December 2022 was reported to be USD /MT toward the conclusion of Q4 2022.
Asia Pacific
The price of peanut oil declined across the Asia Pacific due to the erratic product market dynamics in Q4 2022. The demand-driven nature of the downstream industries, such as the food and housing sectors, is growing. In the early stages of 2022's fourth quarter, prices decreased. The Indonesian government lifted the restriction on palm oil, which led to increased output and lower prices for edible oils. Due to increased supply, which released the pressure on the price of peanut oil and other edible oils, prices fell in the second month of Q4 of 2022. Prices decline in the last month of the fourth quarter as a result of an increase in supply chains and sufficient demand from downstream sectors. Towards the end of Q4 2022, the price of peanut oil was recorded to be USD 1905.87/MT for FOB Mundra India in December 2022.
Europe
Due to rising domestic demand in the food and real estate sectors, peanut oil prices rose in the European region in Q4 2022. In the first three months of Q4 2022, prices climbed because of a rise in demand and a decrease in supply. Because of increasing input costs, prices went up. Prices rose in tandem with the end-use sectors' continually high demand throughout the second part of Q4 of 2022. Due to the rise in the price of other edible oils, peanut oil became a different home oil source in several areas, causing its price to rise as well. Towards the end of Q4 2022, the price of Peanut Oil was recorded to be USD /MT for Germany in September 2022.
Due to higher domestic home and food industry demand in North America, the price of peanut oil rose in the third quarter of 2022. Prices rose in the first half of Q3 of 2022 because of declining supply and increasing demand, so the prices increased because of high input prices. In the second half of Q3, prices increased in step with the end-use sectors' persistently high demand. Since peanut oil was a different domestic oil source in various provinces due to the price increase of other edible oils, its price also climbed. Towards the end of Q3 2022, the price of Peanut Oil was recorded to be USD 2143/MT for the USA in September 2022.
Throughout the Asia Pacific, the price of peanut oil varied because of the uncertain product market dynamics in Q3 2022. The downstream sectors, such as the food and home sectors, are becoming more demand-driven. The prices rose in the first part of Q3 of 2022. The Indonesian ban on palm oil has resulted in higher pricing for edible oils. Prices dropped in the second month of Q3 of 2022 because of Indonesia's easy ban, and the plentiful supply of palm oil has relieved pressure on the price of peanut oil and other edible oils. Due to a rise in demand from downstream sectors, prices rose in the final month of the third quarter. Towards the end of Q3 2022, the price of Peanut Oil was recorded to be INR 165000/MT for FOB Mundra India in September 2022.
In the European region, the price of Peanut Oil increased in Q3 2022 due to increasing domestic demand in the food and housing industries. Due to a rise in demand and a decline in supply, prices increased in the first quarter of Q3 2022. Prices increased because of high input prices. In the second half of Q3 of 2022, prices increased in step with persistently high demand from the end-use industries. Since peanut oil was a different domestic oil source in various provinces due to the price increase of other edible oils, its price also climbed. Towards the end of Q3 2022, the price of Peanut Oil was recorded to be USD 2062/MT for Germany in September 2022.
