Peanut planting area remains large; prices were low last year, and a price rise this year will be difficult

Will peanuts rise in price again in 2018? Frankly speaking, the probability of an increase really is not great. In about two and a half months, the new peanut harvest will arrive, and by then the market's peanut supply will be completely reversed. Everyone should understand that supply and demand determine price, so the room for a price increase is basically limited to before the peanut harvest in September.

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Since last year's peanut harvest, the market trend for peanuts has been relatively weak, which is mainly directly related to the decline in corn and soybean prices in recent years. Affected by grain reserve reform, the price of corn fell all the way from above one yuan to as low as five mao per jin, which can be said to have hurt many farmers' feelings, and soybeans were basically in a similar situation.

As a summer crop like corn and soybeans, when farmers gave up on corn and soybeans they naturally turned to peanut cultivation. In recent years, the increase in peanut planting area has been especially notable in the old peanut-growing advantage regions of Henan and Shandong. For the domestic peanut market, supply was greatly increased in a short period, and the looser supply also led to a decline in market prices.

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Since the decline in peanut prices last year, there have been many rumors that this year's peanut planting area would fall sharply, but judging from surveys by multiple media outlets, the peanut planting area has not changed much, largely because corn and soybean prices have been sluggish this year. In other words, farmers who previously grew peanuts also cannot find a better crop choice.

Based on the above situation, this year's domestic peanut situation probably will not see any major improvement. As for the current peanut trading conditions across the country, peanut trading markets in various places are relatively sluggish. On the one hand, this is the busy farming season; on the other hand, the peanuts in farmers' hands have basically been sold out, and the reduction in remaining grain on the market has directly led to sluggishness in markets everywhere, making them appear relatively quiet.

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And with domestic peanut market demand relatively stable, the market may pick up slightly in the next two months, but do not hold too high expectations, since market supply is relatively ample. I hope everyone seizes the market opportunity.

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