Peanut Oil Prices – Historical Graph
- The average price in the past 3 days is
- The average price in the past 7 days is
- The average price in the past 30 days is
- The average price in the past 365 days is
Popular questions about peanut oil prices:
Peanut Oil Prices Explained
Peanut oil prices spiked globally as weather woes affected the commodity’s yields. Brazil’s peanut output decreased significantly due to a lack of rainfall, impacting the country’s producing regions. Argentina’s remaining stocks are diminishing while expecting a reduced output because of recent droughts.
In Asia, India’s peanut market is stable and the country is waiting for a profitable harvest for this year. Conversely, China’s local market consumes domestically produced peanuts. While this is an improvement, the countries’ combined output isn’t enough to cover the rising global demand.
Why are peanut oil prices fluctuating?
1. Substitute Cooking Oil
Generally, peanut oil competes with other cooking oils like palm oil, soybean oil, and sunflower oil. If the cost of a similar cooking oil, like palm oil, goes up because there is not enough supply or more people want it, consumers might choose peanut oil if it’s still cheaper.
For example, palm oil prices in China increased due to limited supply and high demand. As a result, the rise in palm oil prices led to higher prices for peanut oil in local markets.
2. Consumer Preference
Consumer choices have a big influence on peanut oil demand and prices. If more people want peanut oil than its supply available, its prices may increase as a result of increased demand. Conversely, if the inventory is abundant the price of the peanut oil will be lower than its usual price.
3. Market Speculations
Speculative trading involves traders and investors making predictions about the direction of commodity prices. They base their decisions on market trends, news, and economic indicators.
For instance, due to fears of a severe frost that damaged the crop in India and Pakistan, peanut oil prices reached a record of $2,701 per metric ton last year. However, after India announced peanut importation to suit its domestic demand, prices fell by 10% in the same year.
4. Government Policies
Government restrictions on the import or export of peanuts might affect the total supply of the market. It lowers the worldwide supply of peanuts and possibly raises domestic prices, for instance, by limiting exports and controlling the amount of the product that leaves the country.
Which variables impact the price of peanut oil?
- Substitute Cooking Oil
- Consumer Preference
- Market Speculations
- Government Policies
- Consumer Preference
Where does peanut oil come from?
Groundnut oil or peanut oil is a vegetable oil from groundnut kernels. It is used as a natural moisturizer and is ideal for cooking due to its high smoke point. Additionally, it has multiple applications besides the food industry, such as cosmetics and personal care sectors. Peanut oil comes in two main types:
Refined Peanut Oil – Refined groundnut oil is a colorless, transparent liquid that is used as a cooking medium all over the world. Also, it is chosen for its mild flavor and versatility in different culinary applications. Due to its higher smoking point, it is recommended for deep frying snacks and quick food.
Unrefined – Unrefined peanut oil is less processed, keeping its natural flavor, color, and nutrients. It’s made using methods with minimal heat, preserving the oil’s original qualities. Since it has a lower smoke point than processed oil, it’s suitable for cooking at medium heat. Additionally, it tastes more like peanuts making it perfect for recipes that call for a nutty taste.
Basic steps to extract peanut oil:
1. Cleaning – Peanuts are transported to a processing facility after being harvested. Then, they are processed with a machine for cleaning to stop these impurities from contaminating the oil. Also, this ensures that the extraction process is carried out as efficiently as possible.
2. Dehulling – After the cleaning process, it is essential to remove the outer shell which lacks oil content. It is carried out manually by labor or dehuller to minimize manpower and expedite production.
3. Cooking – Cooking helps release the oil-containing cells from their cell walls and lowers their density, making oil extraction easier. Although pressing is done without heating, the oil that is produced in this way is known as cold press oil.
4. Pressing – Next, peanuts are transported and directed into the screw press machine’s hopper. The continuous movement of material by the screw shaft elevates the pressure to the required level, inducing friction within the screw press. As a result, heat is produced by this friction which lowers the oil’s viscosity in the crushed seeds and increases oil flow.
5. Filtration – After pressing, crude peanut oil retains impurities. To eliminate these impurities, oil filter press machines are commonly used. Also, this system efficiently extracts water from the oil together with a variety of particle sizes, including small and large particulates.
What are the uses of peanut oil?
Oil from peanuts offers a mild or neutral flavor that is enhanced through roasting for a stronger peanut aroma and taste. It is a versatile cooking oil, extensively used in Asian cuisines, and popular for frying foods.
Additionally, it is used externally for application on the skin to moisturize dry skin and for skin conditions like eczema, making it a part of many personal care products.
Furthermore, it is a good source of vitamin E and possesses antioxidant properties. Here are some common industrial uses of groundnut oil:
1. Cooking – Due to its high smoking point, it is widely used in frying and cooking as it works well for high-temperature culinary techniques like deep frying since it maintains its stability even at high temperatures.
2. Biodiesel – It has the potential to be transformed into biodiesel, serving as a renewable and eco-friendly fuel for diesel engines.
3. Cosmetics and Personal Care Products – Due to its moisturizing properties, peanut oil is used in the cosmetic and personal care industry. It is a common ingredient in skincare products, soaps, and hair care formulas.
4. Pharmaceuticals – Groundnut oil is used in the manufacturing of specific medications and serves as a carrier oil for herbal extracts.
5. Protective Coating – Also, it has the potential to function as a protective coating for materials such as wood, metal, and paper as it creates durable films that withstand abrasion and weathering.
What is the future price of peanut oil?
The peanut oil market is expanding as a result of several factors including a growing demand for healthy edible oils, increased awareness of its benefits, and an expanding global population. Also, the rising trend of veganism and vegetarianism is fueling the need for cooking oils made from plants, especially groundnut oil. The demand for more nutritious edible options such as groundnut oil is rising as people become more aware of the health advantages of these oils.
The growing practice of sustainable consumption fuels the demand for organic peanut oil. Manufacturers focus on green approaches in the cultivation and production of peanut oil to meet consumer needs for environment-friendly products. Additionally, the constant oil innovation to even fuel prices led oil firms to explore renewable fuel sources.
For example, the collaboration between Chevron and Texas A&M AgriLife Extension Service researchers for a ‘diesel nut’ project. This partnership aims to create a genetically engineered breed of low-input peanuts that produce higher oil yields for renewable diesel available for passenger cars, tractors, trailers, airplanes, and trains.
If proven successful and viable, this will open opportunities for the commodity and soften the fluctuating oil prices. Thus, experts predicted a bullish peanut market at $1,700 per metric ton by 2030, with a CAGR of 2.30%.