US peanut prices have fallen in recent months due to improved output from the US and Argentina. At 6.11bn lbs, the US crop is estimated to have been 67% larger than the 3.66bn lbs seen last year, in part because of an expansion in the planted area to a four-year high of 560,000 hectares.
On 14th October 2012, 48% of the US crop was reported to have been harvested, with 77% in good to excellent condition, compared to only 40% in the previous year.
Argentina is expected to harvest a record 870,000 tonne peanut crop in 2012/13, up 12% on the 780,000 tonnes produced in 2011/12. Argentina exports around 75% of its total production of peanuts due to low domestic demand, and is the world's top exporter. In the previous season, which ended in September 2012, total exports from the country are estimated to have grown 14% year-on-year to 580,000 tonnes due to plentiful domestic Argentine supplies.
Globally, 26m tonnes of peanuts are produced each year. China is the world's top producer, accounting for 40% of global supply each year. India is the second largest producer (15%), followed by Nigeria (8%) and the US (5%).
Global peanut exports amount to just over 1.7m tonnes per annum. Argentina is the world's top exporter (26% of world exports). China is the second largest exporter (20%), then India (17%) and the US (13%). The main EU trading centre is Rotterdam.