Original research: grassroots price support mentality remains strong, peanut prices rise sharply then fall back

According to initial research, today the domestic peanut market experienced a rally followed by a decline, with the May main contract once rising nearly 2%, but significantly giving back gains in the afternoon. In terms of spot prices, the prices of bulk rice in Henan and Shandong regions remained largely unchanged, with limited trading volume. Recently, oil mills have shown increased enthusiasm for purchasing low-grade oilseed rice, with some mills raising purchase prices and relaxing standards, which has strengthened the willingness of grassroots traders to raise prices. It is also expected that Luhua will fully enter the market for procurement over the weekend. However, the market currently anticipates that there is still a surplus of goods, and oil mill inventories are higher than in previous years, likely continuing to limit the short-term performance of spot prices. Overall, after the Spring Festival, the increased enthusiasm of oil mills to enter the market and the widespread rise in the oil and oilseed markets have driven a rebound in peanut futures. However, the fundamental supply and demand situation in the spot market remains largely unchanged, and larger future changes will depend on expectations regarding planting area and costs for the new crop. (The above is for reference only and does not constitute investment advice.)