About Peanut Kernel Futures
Peanut Kernels are a familiar commodity product used in all forms of food such as peanut butter, peanut oil, or as healthy snacks. Globally, the demand for these kernels has also risen. Based on the USDA and U.S. Census data, the per capita peanut consumption has risen to an all-time high of 7.9 pounds in 2021.
In December, 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 as of January 12, 2023.
To understand more about the product, this article will cover the contract specifications of the internationalised product as well as market information.
Peanut Kernel Demand and Supply
Similar to all other commodities, the Russian and Ukraine conflict has resulted in the rise of prices of agricultural prices across the international market. This includes a negative impact on the Chinese domestic market situation.
From the supply side, US peanuts are also affected by weather conditions, based on peanutgrower (agricultural news) report “officials estimate that at least 40% of the Texas crop will see big yield loss. Virginia has hit a dry spell just before harvest. Nationwide, drought has affected much of the 2022 crop”. China faces the same as drought conditions persist, analysts estimate a “20% -30% fall in China’s overall peanut output this season in September.
From the demand side, it is gathered during the IOPEPC Global Oilseeds conference in 2019 that China’s demand was up to 16000 M/T from 2018 to 2019. In China, large crushers play the role of market drivers, approximately 58% of peanut is used for family and restaurant use, 18% for food ingredient, 18% for non-branded packed or loose snacks, and 6% for branded snacks in consumer packaging.
Peanut Kernel Futures Contract
The Peanut Kernel Futures Contract has the following specifications:
The Peanut Kernel Futures Contract has a minimum price fluctuation of CNY2/ metric ton with a minimum trading margin of 5% of the contract value. Each trading unit is 5 metric tons/lot.
The last trading day of the contract month is the 10th day. (Postponed accordingly if it is a legal holiday in China or a separate adjustment if it falls in the Spring Festival month or another month specifically designated by the Exchange).
Contract months are for January, March, April, October, November, and December.
Trading Hours are from Monday to Friday, at these trading hours:
9:00 am – 11:30 am / 1:30 pm – 3:00 pm (Beijing time)
Rapeseed Oil Futures symbol: PK
Market News
From Ceicdata.com it was reported that China’s Peanut Kernel data was reported at 151.636.000 Lot on 16 Dec 2022. This records a decrease from the previous number of 164,353.000 Lot for 15 Dec 2022. For China’s turnover, Peanut Kernal data was reported at 76,629.000 Lot in 16 Dec 2022. This records a decrease from the previous number of 105,173.000 Lot for 15 Dec 2022. Lastly, for the peanut kernel settlement price, the 3rd-month data was reported at 10,104.000 RMB/Ton on 16 Dec 2022. This records an increase from the previous number of 10,074.999 RMB/ Ton for 15 Dec 2022.
Regarding the goals of China’s output production, Bloomberg records that Beijing is aiming to produce more than 19 million tons of peanuts by 2025, according to the government’s five-year plan.
Currently, China is also a major stakeholder in the Peanut Kernel supply globally. Peanutgrower also acknowledge the Chinese market and mentions that “China grows 10 times the peanuts we do. Still, they are the largest importer in the world and the largest exporter.”
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).
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