Peanut oil markets navigated a broadly bearish landscape through the first half of 2026, underpinned by record-setting groundnut harvests in key producing nations that kept crushing feedstock abundantly available. India's total oilseed production reached an estimated 43.06 million tonnes during the 2025-26 crop year, reinforcing the country's domestic refining capacity and easing import dependence on edible oils. Nigeria, the continent's largest groundnut producer, sustained output near 4.3 million tonnes, bolstering West African crushing operations that cater to both regional consumption and export channels.
In the United States, planted peanut acreage declined from the prior season according to the USDA's June 2026 Acreage Report, reflecting grower rotation toward competing row crops with more favourable margin profiles. The resulting global surplus in raw groundnuts, particularly from the 2025 marketing year, drove crushing margins lower and exerted persistent downward pressure on refined peanut oil realisations across international spot markets. Meanwhile, competition from cheaper palm and soybean oil alternatives further limited the commodity's pricing power within industrial food-manufacturing supply chains, as large-scale processors increasingly substituted toward lower-cost vegetable-oil inputs wherever formulation specifications permitted.
Analyst Insight
According to Procurement Resource, peanut oil valuations are expected to remain under modest downward pressure from ample groundnut supplies. However, any weather-driven harvest shortfall in key producing regions could tighten the crushing-feedstock balance.
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During 2025, peanut oil prices displayed a mixed trend, influenced by government policies, global trade shifts, and changing groundnut supply conditions. In the first half of the year, prices remained relatively stable to soft, particularly in India, where government auctions of peanut stock limited upward momentum despite steady domestic demand. Globally, increased exports from Brazil and Argentina improved availability in Asian markets, while disruptions in Sudan and tariff-related uncertainties in the United States reshaped trade flows.
In the second half of 2025, market sentiment remained mixed as expanded peanut cultivation supported supply expectations, though weather-related disruptions affected crop quality and delayed arrivals in some regions. Currency fluctuations and rising import costs for edible oils encouraged a shift toward domestic sourcing, providing some support to prices. Demand from food processors and refiners remained steady, keeping the market balanced.
Groundnut or peanut oil is a healthy sweet-flavoured oil derived from peanuts. It is available in various forms, including refined, cold-pressed, gourmet and blended. It has various nutrients like Vitamin E, Vitamin K, Iron, Zinc, Phytosterols and healthy fats (saturated, monounsaturated and polyunsaturated). It is mainly used for culinary applications.
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As a carrier oil in cosmetic products, as pharmaceutic aid (solvent), as a cooking and salad oil, for deep frying, shortening ingredient for doughnuts and cakes, as an emulsifier, and emollient.
PEANUT OIL, ARACHIS OIL, katchung oil, earthnut oil, OIL OF PEANUT, GROUND NUT OIL, indigenous peanut oil, Solvent crude peanut oil
Olam International, CHS Inc., Cargill, Inc., Wilmar International Limited, Archer Daniels Midland Company, Ventura Foods
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Peanut oil is produced by cleaning and purifying the Peanuts, followed by screw pressing to extract the oil. The extracted oil is then refined through processes like neutralization, bleaching, and deodorization.
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This report provides the cost structure of aniseed oil production by steam distillation method. In this process, steam is passed over the dried fruit of aniseed which vapourised the oil into the steam.
This report provides the cost structure of production of Orange oil by cold pressing method. After the extraction of juice from orange, the peels of the fruit are cold pressed for extraction of oil.
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