Asia
In Q4 of 2024, peanut oil prices in Asia faced downward pressure primarily due to a bumper groundnut harvest in key producing regions, especially India. Gujarat saw a significant increase in groundnut production, which resulted in a large supply of peanuts. However, the demand for peanut oil remained weak both domestically and in export markets.
Indian exporters faced stiff competition from African countries like Nigeria and Ghana, which offered peanuts and oil at more competitive prices. This led to a reduction in India’s export share, particularly in African markets. As a result, peanut oil prices in the region softened, and it was expected that the availability of new stock in the coming months would further push prices down.
Europe
In Europe, the price trend for peanut oil mirrored the challenges seen in Asia. Import prices for Indian peanut oil faced stiff competition from other regions, particularly from Africa, where lower prices were offered. The European market, which relies heavily on imports, found itself under pressure as the export prices from India were not competitive enough. Moreover, European consumers were less willing to pay premium prices due to the availability of cheaper alternatives like sunflower and palm oils. Consequently, European peanut oil prices experienced some downward movement, aligning with the global trends of weakening demand and oversupply.
North America
In North America, peanut oil prices remained relatively stable but faced slight declines toward the end of Q4. The oversupply of peanuts in India and other major producing countries contributed to the softness in global peanut oil prices, which in turn affected the North American market. While the U.S. continued to import peanut oil, competition from lower-priced oils in Asia and Africa dampened demand. This situation put pressure on the market, leading to some reduction in prices for peanut oil, especially with the growing supply from India and other regions.
Analyst Insight
According to Procurement Resource, the outlook for Peanut Oil prices is expected to remain weak due to continued oversupply from major producing countries like India and China. The increased competition from low-priced oils in Africa and other regions is likely to exert further downward pressure.