Peanut kernels are a familiar commodity product as it has a wide range of uses and are highly versatile in various industries. They are not only enjoyed as a popular snack but also find their way into numerous culinary creations, both savory and sweet. Peanut butter, peanut oil, and peanut flour are commonly derived from peanuts, while confectionery items like chocolate bars and candies often feature peanut kernels.
The food industry relies on peanuts for their distinct flavor, texture, and nutritional value. Additionally, the demand for peanut-based protein alternatives, such as peanut protein powder and peanut milk, has been on the rise, further contributing to the significance of peanut kernels in the market.
The demand for peanut kernels extends beyond the food industry. They are also sought after in the animal feed sector, particularly in poultry and livestock farming. The high demand for peanut kernels can be attributed to their diverse culinary applications, nutritional benefits, and the popularity of peanut-based products among consumers.
Peanut kernels serve as a reliable source of protein, healthy fats, and essential nutrients, making them a desirable ingredient in both human and animal diets. With their wide range of uses and growing demand, peanut kernels play a crucial role in various sectors, making them an important commodity in the market.
This article aims to share the 5 things you need to know about Peanut Kernel Futures.
1. Zhengzhou Commodity Exchange Peanut Kernels Futures
In December 2022, Zhengzhou Commodity Exchange (ZCE) listed Peanut Kernel futures and options as one of the products to solicit public opinions as an internationalized product. In January 2023, the product has been added to the list of specified domestic products and will be open to overseas traders.
However, global traders are required to go through an overseas intermediary like Orient Futures Singapore to trade in the Chinese market through the Zhengzhou Commodity Exchange (ZCE).
Orient Futures Singapore provides convenient access to Peanut Kernels futures from the ZCE for international traders. This allows international traders to use US dollars and offshore RMB to meet the initial trading margin requirements and trade without incurring Chinese taxes.
Orient Futures Singapore also provides access to other Chinese trade exchanges such as Shanghai International Energy Exchange (INE) and Dalian Commodity Exchange (DCE).
ZCE Peanut Kernels Futures Contract Specification:
The ZCE Peanut Kernels Futures Contract has the following specifications:
The ZCE Peanut Kernels Futures Contract has a minimum price fluctuation of CNY 2/metric ton.
Contract months are January, March, April, October, November, and December
The last trading day of the contract month is the 10th trading day of the delivery month.
Zhengzhou Commodity Exchange trading hours are from Monday to Friday, at these trading hours:
Monday to Friday (except public holidays)
9:00 a.m.-11:30 a.m. 1:30 p.m.-3:00 p.m. (Beijing time)
ZCE Peanut Kernels Futures symbol: PK
2. Who are the exporters and importers of Peanut Kernels?
As the demand for Peanut Kernels continues to expand, it becomes crucial to gain insights into the supply and demand dynamics in the global market. Identifying the major exporters and importers of peanut kernels provides valuable information in understanding the market landscape.
Exporters of Peanut Kernels
According to a report by World’s Top Expert, India, Sudan, the United States of America, Brazil, and the Netherlands emerged as the top five exporters of peanuts in 2020. Together, these leading exporters accounted for 55% of the total global peanut exports in 2021.
Importers of Peanut Kernels
On the other hand, China, the Netherlands, Indonesia, Russia, and Germany stood out as the top five importers of peanuts in 2021. Collectively, these countries accounted for over half 53.5% of the global peanut imports in terms of dollar value.
3. Peanut Kernels Supply & Demand
Supply
According to a report by Sohu, China’s peanut planting area in 2022 decreased by 18.71% compared to 2021, reaching approximately 8.4 million acres. The yield per unit is estimated to have decreased by 5% compared to the previous year.
Last year, China’s peanut production was 13.199 million tons, a year-on-year decrease of 19.57%, reaching a historically high reduction level. As a result of the reduced production in 2022, the overall supply of peanuts in 2023 is relatively tight in China.
However, according to the May 2023 Oil Crops Outlook report by the United States Department of Agriculture, US farmers are looking to increase peanut acreage for the 2023/24 marketing year.
With nearly 100,000 more acres expected to be planted compared to last year, the total acreage is forecasted to reach 1.55 million acres. Assuming a 96 percent harvest rate and a 5 percent improvement in yields to 4,230 pounds per acre, U.S. peanut production is projected to rise to 6.3 billion pounds from 5.6 billion in 2022/23.
This increase in production, coupled with lower beginning stocks, is expected to boost supply to 8.6 billion pounds, 557 million pounds higher than the previous year.
Demand
According to Sohu, the period from March to May is the peak season for imported peanuts in China. The country’s peanut imports mainly come from Sudan, Senegal, the United States, and other countries.
Between October 2022 and March of this year, the total imported peanuts reached 408,500 tons, showing a 254% increase compared to the previous year. The import volume of peanut oil also rose to 180,500 tons, a 205% increase.
These data indicate that imported peanut kernels have helped to supplement the domestic supply of peanuts and peanut oil. However, they have not been able to ease the tight supply situation, and currently, the inventory in peanut-producing regions is considerably lower than last year.
4. Zhengzhou Commodity Exchange Peanut Kernels Futures Price
Ceicdata reported that the price for ZCE Peanut Kernels was at 10,092.000 RMB/Ton on 18 Jul 2023. This is a decrease from the previous price of 10,120.000 RMB/Ton on 17 Jul 2023.
5. Peanut Kernels Global Market Outlook
The Peanut Kernels global market is expected to face a supply shortage this year due to a significant decrease in China’s peanut kernels production.
Despite having additional inventories and expected imports, the overall peanut supply will be much lower than the previous year. This is because peanut farmers earned less money compared to growing other crops like corn, and peanut farming is not very automated. Additionally, bad weather during planting and growth in some areas can cause a big drop in peanut production.
To make up for the lower domestic production in China, more peanuts are being imported, especially from Africa between March and May.
This helps add to the supply of peanuts used for making oil. However, the high prices of peanuts have made people buy less. Peanut oil factories are struggling to make money, so they might use up their existing stock instead of buying more peanuts.
Overall, the reduced peanut supply will lead to much lower inventories and a higher ratio of peanuts being consumed by the end of the 2022/23 season. This could cause peanut prices to fluctuate.
In the medium to long term, farmers will likely be encouraged to grow more peanuts because it can be profitable. So, in the 2023/24 season, we expect peanut farming to increase. The actual increase will depend on how many peanuts farmers plant and the weather during the growing season.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG).
We provide premium customer service at an affordable cost to all our clients. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
