The continuing drought (reported worst drought in 30 years) in Argentina is the main

news in the world peanut market over the past 2-3 months. Although over Easter

Argentina finally received decent rains, these rains will mainly help later plantings and

soften the soils to allow for digging of earlier plantings.

This drought will have a huge impact on all agricultural products whether soy, corn or

wheat and more. Losses on peanuts are predicted to be very large due to much lower

yields, processors are withdrawn from the market to assess what volumes and quality

will be harvested over the coming month or so.

Brazil will have a very good crop, however, pricing will follow that of Argentina and

processors from Brazil are also largely withdrawn.

USA after a bumper 2017 crop, intends to plant 18% less than last year and Chinese

prices have been firming slightly largely due to RMB currency movements.