Stark disparities have appeared between two important peanut markets as the Chinese shell out more for the groundnut amid a scramble for supplies, while record US inventories fuel fears that farmers may not have enough warehouse space to store the snack.
The divergence comes as regional price differences have widened because of the weather, state subsidies that change farmer behaviour and quarantine rules that affect trade flows.
Peanut prices from China “have gone up dangerously”, says Paul van Velzen, managing director of Aldebaran Commodities, a Rotterdam-based nut and oilseeds trader.
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