The peanut market's supply and demand tug-of-war is hard to determine the winner

Suppliers are reluctant to sell at low prices, and demand-side buyers are cautious about purchasing at high prices. Both supply and demand sides enter the market as needed, and transactions will remain subdued. In this environment, peanut prices stay within a small range of slight adjustments, with no clear trend direction. Recently, attention should be paid to the procurement trends of oil mills, including the opening times of Zhengyang, Dingtao, and Xinxiang Lu Hua factories, as well as whether small and medium-sized oil mills follow the procurement policies of major oil mills. Currently, the willingness of major oil mills to purchase is positive, which increases the difficulty for small and medium-sized oil mills to buy. If these smaller mills adjust their procurement strategies to attract supplies, it will further strengthen suppliers’ confidence in holding prices. Overall, peanut prices are strongly supported at the bottom, and if new positive factors emerge to stimulate the market, prices may again experience a slight upward adjustment. However, from a long-term perspective, the current consumption environment remains sluggish, with continued slow sales of commodity rice in the domestic market. Large-sized commodity rice stocks in production areas are continuously accumulating, indicating that the market may face some pressure to sell in the future, and there is still insufficient momentum for a significant price increase. (China Peanut Network)