Lack of foreign demand drives peanut prices down
- Wed, 25 October 2023
The prices of peanuts continue to fall in the absence of foreign demand, according to the Mandalay wholesale market. “The prices show a steep plunge these days in the Mandalay Wholesale Centre. The white peanut is barely exported to foreign markets. The price is relatively similar to the prices of new peanuts used in oil mills,” Ko Ye Moe from the Win Win Depot in Mandalay said.
At present, fresh peanut supply from regions near Mandalay city is seen at the Mandalay Wholesale Centre. The demand from Chinese buyers is sluggish. The prices peaked at K7,550-11,000 per viss on the back of strong foreign and local demand at Manda lay wholesale centre on 18 August.
The prevailing prices of peanuts moved in the range of K5,700-6,500 per viss (a viss equals to 1.6 kg), Mandalay market’s price statistics indicated. The peanut market is relying on domestic oil millers and buyers at present. “The market potential is quite dissatisfying. It is solely relying on domestic demand for now,” Ko Ye Moe shared his opinion. Despite the drop in peanut prices, the peanut oil price stayed strong at over K15,000 per viss.
Myanmar has been exporting oil seeds (sesame seeds and peanuts) to foreign countries. Last April 2022, the world’s top palm oil exporter Indonesia, which is one of the main oil suppliers to Myanmar, declared an export ban on cooking oil export to reduce domestic shortage. Consequently, Trade Department under the Ministry of Commerce temporarily suspended exports of oil crops (peanut and sesame) from 9 May 2022 to have oil self-sufficiency. Exports of Myanmar’s edible oil crops resumed as the world’s top palm oil exporters returned to normalcy, according to a notification dated 5 July 2022 released by the Trade Department. The country conveyed over 9,900 kilogrammes worth US$15.319 million to foreign markets through seaborne and border trade channels in the H1 of the current financial year 2023-2024 beginning 1 April.