Peanut Oil Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Peanut Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Peanut Oil Price Trend in First Half of 2023

The prices of peanut/groundnut oil recorded a bullish trend in the first half of 2023. The feedstock groundnut is in short supply, and most of the production is diverted for direct consumption by the consumers. Only 25-30 percent of the production is available for crushing mills and thereby converted into edible oils. In the concerned period, the prices of other edible oils, such as palm and soybean, kept falling, and the market kept dull. However, the prices of peanut oil kept strong.

This season saw a fall of around 2 lakh metric tonnes in groundnut production. During the first half, despite constant demand, the prices have increased manifold as big companies are actively buying the available product at high prices, thereby causing the peanut oil prices to shoot up in the end markets. Despite the stagnant demand, the price trends are actively rising, given the current fall in acreage and product supply.

Analyst Insight

According to Procurement Resource, the price trends for peanut/groundnut oil are expected to remain unsettled in the coming quarter. The sudden spurt in groundnut prices has attracted the attention of both consumers and traders. The mill owners fear that such prices will unnecessarily invite the government’s attention which will impose restrictions to control the prices, thereby causing the farmers to move to other edible oil seeds.

Peanut Oil Price Trend for the Second Half of 2022

The price trends for peanut/groundnut oil kept firm throughout the second half of 2023. Despite the falling prices of other edible oils, the market for peanut oil kept strong, given the change in consumer consumption levels. However, the erratic supply of feedstocks heavily impacted peanut oil prices. The Indian peanut industry is undergoing a crisis owing to loss in acreage, untimely rain, crop reduction, and an increase in farmgate vulnerability.

Many farmers have shifted from growing groundnuts to cotton to minimize harvest losses. Given the drastic decrease in acreage in Gujarat, India, the high groundnut prices are unlikely to go down in the 2022-2023 kharif season. Production is estimated to dip below 3 million tonnes in the current season. Further, the huge spurt in global demands exerted pressure on the already constricted supply chains.

The mills are not able to procure groundnuts at affordable rates for crushing, causing the prices of its derived products to rise amid growing demands. The current market dynamics severely impacted the prices of peanut/groundnut oil, averaging around Rs 3000 per 15 kg tin in the Indian market.

Analyst Insight

According to Procurement Resource, the price trends for peanut oil are expected to remain volatile in the coming months. Given the current vulnerabilities in market supply amid rising demand, groundnut oil is likely to incline.

Procurement Resource provides latest prices of Peanut Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.