Oil mills find it difficult to generate profits, and large-scale acquisitions are expected to be postponed.
The price of peanut crushing by-products has fallen, making it difficult for oil mills to make profits. On October 26, the price of peanut meal market was weak. Most of the breeding industry is in a state of loss, feed mills only need to replenish supplies, and peanut meal shipments are light. Affected by the weakness of the oil and fat sector, the price of peanut oil was lowered. The average price of first-grade peanut oil: Shandong 15,600-16,300 yuan/ton, down 0-200 yuan/ton from October 25; Hebei 16,200 yuan/ton, down 200 yuan/ton; Henan 16,200-16,400 yuan/ton, Guangdong 16,400 yuan /ton, both remained unchanged. The price of strong-flavor peanut oil was 26,200 yuan/ton, unchanged. Judging from the inventory of oil mills, it can still be sustained for a while. Some oil mills are cutting prices while closing, and it is expected that large-scale acquisitions will be postponed.
Generally speaking, we are currently in a stage where domestic supply dominates. Prices of peanuts are weak under the pressure of new peanut crops being launched on the market. Farmers are slightly reluctant to sell near the factory cost price. However, it is expected that the support will not be strong and there is still room for peanut prices to fall.
