IMPORTANT UPDATE ON PEPPER MARKET

 

 

October,22  2020

After a relative quiet and dull season for pepper, the sting seems to be in the tail. We would like to bring you up to speed for the 3 most important pepper exporting countries.

Vietnam
We already noticed that pepper gardens were neglected by the farmers due to the low prices of the recent years. The outlook for 2021 was that we would face a lower crop yield. Mother nature worsoned the situation significantly. Recent heavy rainfall and storms in Vietnam created quite some damage. We have received several reports on land slides in the pepper growing areas. As a result we see buyers stepping in in order to secure requirements. Most active at the moment are Chinese importers of pepper. New crop is still 3-4 months away.

Brazil
In between crops. New crop is expected be delayed by several weeks and foreseen to be ready for shipment in December only. As reported earlier consensus is found in the expectation that the 2020/2021 crop will be substantial lower by about 40% for the same reason as we found in Vietnam: at current price levels farmers have no interest in investing and mainting their gardens on these low price levels.

Indonesia
In Indonesia we have seen the result of poor maintenance this season already. The output for as well black as white pepper was much lower than previous seasons. With relatively high prices compared to other countries of origin, exports were backed by loyal buyers for specifically Lampong and Muntok pepper. However since last week we spot an interesting situation. Chinese importers have stepped up their buying; mainly for Muntok white pepper. Available quantities are decreasing rapidly. Market is firming up fast.
In general we also see the trend of freight rates increasing for shipments from Asia. 

 

 

IPC MARKET REPORT No. 42/20, 12 - 16 October 2020

 

 

16 October 2020

MARKET REPORT

Market this week showed a mixed response. In local market, Malabar black pepper was reported stable with a marginal decrease at an average of USD 4,379 per Mt. Indonesia black pepper was reported stable with a marginal increase averaging at USD 1,964 per Mt. Whilst, Indonesia white pepper was reported with 2% deficit when compared to the previous week averaging at USD 3,690 per Mt. The decrease of Indonesian white pepper could be contributed to the oversupply in local market. Malaysia black and white pepper were reported with 4% and 1% deficit respectively as opposed to the previous week averaging at USD 2,258 per Mt for black pepper and USD 3,699 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported stable with a marginal increase to an average of USD 2,097 per Mt for black pepper and USD 2,831 per Mt for white pepper. Sri Lanka black pepper was reported with 1% deficit as compared to the previous week and was traded at an average of USD 3,050 per Mt. China white pepper was traded at an average of USD 4,192 per Mt Locally.

International market was reported with a rather stable outlook as only Indonesia white pepper recorded a decrease. India black pepper was reported stable with a marginal decrease at an average of USD 4,652 per Mt. Indonesia black pepper was reported stable with a marginal increase at an average of USD 2,402 per Mt. Whilst, Indonesia white pepper was reported with 2% deficit as compared to the previous week averaging at USD 4,336 per Mt. Malaysia black and white pepper continued to be reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were also reported stable and unchanged. China traded its white pepper at an average of USD 4,392 per Mt internationally.

International market was reported with a decreasing demand from USA and Europe. Muntok white pepper in US Market for CF October/November was reported at USD 4.200 - USD 4,300 per Mt.

 

SPICES MARKET UPDATE 12TH OCT 2020 – WEEK 42

 

PEPPER 

 

Pepper market remained stable during the past week. Heavy rain in all provinces of Vietnam due to typhoons and tropical depressions, the farmer offered raw material is slower than in previous weeks but prices remain unchanged the whole of the week.

The weather may not really affect the 2021 pepper crop and we need more time to evaluate and analyze. However, due to limited fertilization by farmers, the string of peppercorn was sparse, the phenomenon of sparse string in pepper spreading from almost all key pepper areas of Vietnam. In addition, the price was low while the labor cost increases steadily every year. It will significantly affect the yield for the 2021 crop especially for light berries.

Compared to recent years, October & November is quite sensitive on the price to steady/firmer trend when the inventory has been reducing, selling pressure will be lower than usual. The new season crop 2021 still has 3 to 4 months to start (in mid-January, gradually harvested in Daknong area, but the main crop is still in March as usual). 

Due to the influence of Covid, many different countries reduce buying and not inventories, especially China. If the situation of Vaccine improves and becomes clearer, many countries will increase buying volume in the new season 2021. 

 

We will have another survey pepper crop in Oct/Nov and report will be sent you for reference in next month.

 

 

 

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https://offers-peppertrade.blogspot.com/2020/10/vietnam-pepper-offer-october-10th.html 

IMPORT OF PEPPER BY SPAIN

 

IMPORT OF PEPPER BY SPAIN

Spain, officially the Kingdom of Spain, is located in Europe with its continental European territory situated on the Iberian Peninsula. Its territory also includes two archipelagoes: the Canary Islands off the coast of Africa, and the Balearic Islands in the Mediterranean Sea. Thus, making Spain the only European country to have a physical border with an African country (Morocco). Furthermore, Spain actively imports pepper from various pepper producing countries for domestic consumption or for re-export.

In 2018, Spain was reported to have imported a total 5,275 Mt of pepper which 90% or 4,753 Mt of it comprised of whole pepper while 10% or 523 Mt of it was ground pepper. The average import of pepper by Spain in 2018 was reported to be 440 Mt per month with the highest quantity recorded in April with 580 Mt. The total expenditure of pepper import by Spain was reported to be as high as USD 21.3 Million, recording an average price of the total pepper imported by Spain at USD 3,865 per Mt for whole pepper and USD 5,654 Per Mt for ground pepper.

Year 2019 saw an increasing trend in term of quantity of pepper imported by Spain. Spain was reported to have imported a total of 5,789 Mt which 80% or 4,628 Mt of it comprised of whole pepper and 20% or 1,161 Mt of it was ground pepper. Thus, recording an increase of 10% when compared to the same period in 2018. The average pepper imported by Spain was reported at 482 Mt per month which peaked in January with 566 Mt. Although increasing in terms of quantity, Spain's expenditure of pepper import was reported with a decrease of 15% to a total of USD 18.1 Million. Thus, recording an average price of the total pepper imported by Spain at USD 3,276 per Mt for whole pepper and USD 2,587 per Mt for ground pepper or a decrease by 15% and 54% respectively as compared to 2018.

As of May 2020, Pepper import by Spain was reported with an increase of 7% as compared to the same period in 2019, totaling at 2,708 Mt which comprised of 82% or 2,233 Mt of whole pepper and 18% or 474 Mt of ground pepper. The total expenditure of pepper import by Spain as of May 2020 was reported with a decrease of 7% when compared to the same period in the previous year, totaling at USD 7.5 Million. Thus, recording an average price of the total pepper imported by Spain at USD 2,694 per Mt for whole pepper and USD 3,169 per Mt for ground pepper.

The top five countries of origins of Spain's pepper as of May 2020 were reported to be Viet Nam with 1,085 Mt (an increase of 33% as compared to the same period in 2019), Brazil with 656 Mt (an increase of 56%), Indonesia with 207 Mt (an increase of 31%), Netherlands with 140 Mt (a decrease of 35%) and Belgium with 136 Mt (a decrease of 23%). The decreased of Spain import from Netherlands and Belgium could be contributed to Spain preference of importing from origins countries which offered more competitive price such as Viet Nam (an increase by 266 Mt as compared to the same period in 2019), Brazil (236 Mt) and Indonesia (49 Mt).

IPC MKT REPORT No. 38/20, 14 - 18 September 2020

 

 

MARKET REPORT

Market this week was reported positively. In local market, Malabar black pepper was reported with an increase of 2% as compared to the previous week to an average of USD 4,428 per Mt. Indonesia black and white peppers were reported with an increase of 3% and 2% respectively when compared to the previous week at an average of USD 1,951 per Mt for black pepper and USD 3,800 per Mt for white pepper. The increase of Indonesia pepper could be contributed to the increase of demand while the stock was limited despite new product coming to the market. Malaysia black and white pepper were reported with an increase of 1% respectively as opposed to the previous week averaging at USD 2,420 per Mt for black pepper and USD 3,807 per Mt for white pepper. Furthermore, Viet Nam black and white peppers in local market were reported stable with a marginal increase, averaging at USD 2,013 per Mt for black pepper and USD 2,831 per Mt for white pepper. Sri Lanka black pepper was reported with an increase of 2% as compared to the previous week and was traded at an average of USD 3,123 per Mt while China white pepper was reported stable and unchanged.

International market showed with a similar positive outlook. India black pepper was reported with the same 2% increase as compared to the previous week at an average of USD 4,700 per Mt. Indonesia black and white pepper were reported with an increase of 2% respectively as opposed to the previous week at an average of USD 2,386 per Mt for black pepper and USD 4,457 per Mt for white pepper. Malaysia black and white pepper continued to be reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white peppers were reported with an increase of 1% respectively when compared to the previous week averaging at USD 2,500 Per Mt, USD 2,581 per Mt, and USD 4,020 per Mt respectively. China white pepper was reported stable and unchanged.

 

 

VIETNAM PEPPER MARKET UPDATE 8TH SEPTEMBER 2020 – WEEK 37

 

 

According to the estimate of the Import and Export Department, pepper exports in August reached 18 thousand tons, worth $ 45 million, down 0.1% in volume but up 0.3% in value compared to July. Compared to 8/2019 decreased 4.6% in volume and 3% in value.

In the first 8 months of 2020, pepper exports reached 203 thousand tons, worth $ 445 million, down 7.4% in volume and 19.9% in value over the same period in 2019.

In August, the average export price of pepper was estimated at 2,500 USD/ton, an increase of 0.4% compared to July and an increase of 1.6% compared to August 2019.

In the first 8 months of 2020, the average export price of pepper was estimated at 2,198 USD/ton, down 13.5% over the same period in 2019.

Market opening this week with firmer trend due to good demand from EU after long vacation. USA showing many interesting to cover fourth quarter 2020 and first quarter 2021 shipment but we heard Vietnam exporters withraw or have not give any discounting on the price. China we foreseen will back again very soon to cover enough stock 2020 after only booked 1.240 tons in August. Vietnam farmer will walk with deliberate step and not hurry to offer when their stock has reduced remarkable. 

Indonesia White pepper up daily and very less offer due to poor crop. Black Pepper is moving up and less offer is predictable.

Brazil Market firm/up tone and less offer when exporters prefer to cover short position. We heard crop maybe affected due to farmer not take care much in Para crop and density of pepper is lower than expectation.  

 

 *

On August 24, 2020, The Vietnam Ministry of Industry and Trade issued Decision No. 2250 / QD-BCT announcing the List of “Reputable exporters” in 2019. PTEXIM is honor to be the honored pepper exporter.

The list of “reputable exporters” in 2019 was synthesized and announced on the basis of selection and proposal of 55 agencies and organizations including ministries, industries, commodity associations, provincial Department of Industry and Trade with strict criteria for 25 commodity sectors as regulated by the Ministry of Industry and Trade on minimum export turnover, reputation of business with foreigners, and observance of legal regulations on customs. environmental protection tax…

As one of the leading professional exporters in Vietnam’s pepper market. PTEXIM has been recognized and honored by the Ministry of Industry and Trade as a “reputable exporter” in 2019. We understand and persevere in pursue the goal of quality products, professional services and brand reputation as the foundation for sustainable development for businesses with all responsibilities and passion. We hope continue to receive your support.

 

 

 

VIETNAM SPICES MARKET UPDATE 17TH AUGUST 2020 – WEEK 34

 

PEPPER
Last week, the pepper market increased about 2% with demand from China and the Middle East. The USA still shows a relatively small demand and only accepts to buy long time shipment orders while almost Vietnam exporters hesitate or withdraw. The EU is on holiday so demand continues to be quiet. We hope the market will be better next time when some countries reopen again.  In addition, Russian have found vaccines/India and the USA are also testing many vaccines in the final stage. Hope everyone/all of the world will be healthy, starting a new business cycle soon.

Current weather in Vietnam; After fluctuating and flooding, the weather is currently well evaluated in key pepper areas such as Daknong & Daklak. Impacts of the 2021 pepper crop are likely to be low in these two key provinces. We will send more information after the survey next October.

 Indonesia; According to the information received, the heavy rain and flood took place on a large scale, so the crop heavily affected both black and white pepper. Currently Indonesian prices are at a very high level with a reference price of $ 2,550 – 2,650 LASTA and $ 4,150 for FAQ white pepper.

 Brazil; Currently, it still offers competitively, but mainly delivered in quarter 4/2020

 

CASSIA
Heavy rain and flooding happen in the largest cinnamon area in Vietnam. Therefore, the harvest for the 2020 crop is affected and the price of cinnamon is likely to remain stable as demand from EU/USA/India/Bangladesh still supports the market.

 

STAR ANISE
The amount of inventory is still tight. The price is expected to be stable or increase in the coming time.

 

 

 

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VIETNAM PEPPER SITUATION AUGUST 2020

 

17^TH AUGUST 2020

In the first 7 months, Vietnam exported 186,160 tons of pepper (166,669 tons of black pepper, 19,491 tons of white pepper).

First half of August, Vietnam exported 7,215 tons of pepper and is forecast to reach at least 15,000 tons in August bringing the total pepper exports to 201,160 tons (180,169 tons of black pepper and 20,991 tons of white pepper).

Thus, we can have a rough look at the export pepper data of 8 months of 2020 as follows;

 

- Exported 180,169 tons of black pepper (1)

- Exported 20,991 tons of white pepper (2)

- Loss weight when processing white pepper 25%; 6,997 tons (3)

- Domestic consumption; 8 - 10,000 tons annually (4)

- Loss weight when processing ground pepper is about 5%; 1,000 tons (5)

 

Total exported and domestic consumption… in the first 8 months 2020 as;

 

(1) + (2) + (3) + (4) + (5) = 219,157 tons (X)

 

As many source and reports from the beginning/middle of this year from Exporter/Processor/IPC/VPA…;

 

- Carry over 2020 is about 20%. Estimated at 80,000 tons (a)

- Crop size 2020; from 230 - 245,000 tons (b)

- Imported from Brazil/Indonesia/Cambodia; 30,000 tons (c)

 

Therefore, the total quantity expected to be used for export 2020 remains;

 

(a) + (b) + (c) = 355,000 tons (Y)

 

So in theory, then;

 

1.      Quantity of pepper used for export for next 4 months from September to December (excluding carry over last year (a) 80,000 tons) as below;

 

(b) + (c) - X = 245,000 + 30,000 - 219,157 = 55,843 tons.

 

This number is easily achieved in the last 4 months of 2020 and certainly the inventories of the previous years will gradually reduce. The total crop size of Vietnam pepper 2020 is not enough for export. It’s quite reflective upon the situation after 5 years back as from 2016.

 

2.      However, if including inventory of 80,000 tons (a), the total quantity will be used for export for next 4 months from September to December as below;

 

(Y) - (X) = 355,000 - 219,157 = 135,843 tons.

 

Thus, the total quantity used for export is plentiful because next 4 months definitely the total quantity to export can not exceed 70.000 tons . However, please note; the inventory for pepper in Vietnam is at 15 - 20% in every year. It is considered to be largely frozen inventory and its concentrate to exporters, middleman and rich farmers stock. These inventories are less pressured to sell if the price is not attractive enough (lower than inventory price – maybe very high).

 

Note; The data above is our research and it’s for reference only because the statistical tool has many shortcomings and limitations.

*This report made and presented by the

 

IPC PEPPER REPORT No. 33/20, 10 - 14 August 2020

 

LOCAL MARKET

Market this week showed a mixed response with only Indonesia black pepper was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 1% when compared to previous week at an average of USD 4,199 per Mt. Indonesia black pepper was reported with 4% deficit as compared to the previous week at an average of USD 2,026 per Mt whilst Indonesia white pepper was reported stable averaging at USD 3,478 per Mt. The decrease of Indonesia black pepper price could be contributed to the harvest season currently ongoing, thus, pushing down the local price. Malaysia black and white peppers in local market were reported stable with a marginal increase at an average of USD 2,387 per Mt for black pepper and USD 3,754 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with an increase of 2% and 5% respectively when compared to the previous week averaging at USD 1,995 per Mt for black pepper and USD 2,829 per Mt for white pepper. Sr i Lanka black pepper was reported with an increase of 1% as compared to the previous week and was traded at an average of USD 2,864 per Mt.

INTERNATIONAL MARKET

International market also showed a mixed response as only India origin was reported with an increase. India black pepper was reported with the same increase of 1% when compared to the previous week at an average of USD 4,466 per Mt. Indonesia black pepper was reported with 4% deficit when compared to the previous week at an average of USD 2,472 per Mt whilst Indonesia white pepper was reported steady averaging at USD 4,098 per Mt. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable with a marginal increase averaging at USD 2,430 per Mt, USD 2,511 per Mt and USD 3,950 per Mt respectively. 

 

 

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GLOBAL PEPPER PRICES ON AN UPWARD TREND

 
Kochi  August 12, 2020

Pepper prices have started moving up globally, thanks to increased buying activities in the international markets.

Sri Lankan pepper prices was up by $400 per tonne, touching $3300-3500, while the rates of Vietnam, Indonesia and Brazil are also reporting an increase of $300-400 per tonne. Overall, there is a surge in procurement globally, said Kishore Shamji of Kishor Spices.
The Indian domestic market is also reported to be active in view of the ensuing festival demand. All sections of the trade are in a mood to cover their requirements as they are not expecting any downward price trend in the near future, he said.

The Kochi market was up by ₹1 per kg at Rs315 per kg for ungarbled on Wednesday and the farming community appears to be holding the crop, anticipating a further rise in prices, Shamji said. This is evident from the arrivals in the market, which was only at seven tonnes. The prices of Karnataka pepper are reported to be higher than Kerala due to good demand for bolder berries.

Moreover, heavy rains and landslides in the high ranges has hampered truck movement, bringing pepper to the market. Since the market is witnessing a good demand, he said the prices are expected to go up.

IPSTA Black pepper rates.
MG1 – ₹335 ; UNG-₹315 ; 500 G/L – ₹305 ; Arrival/Off-take – 7 tonnes

* Today:
1 USD = 74.8315 INR


V.Sajeev Kumar  for
Thehindubusinessline.com

 

 

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IPC PEPPER REPORT No. 31/20, 27 - 31 July 2020

LOCAL MARKET 

As the Moslem around the world celebrates the Eid Al-Adha Mubarak 1441 H amid the global pandemic of Corona Virus, Market this week showed mixed response with a rather positive outlook as only Viet Nam origin recording a decrease. In local market, Malabar black pepper was reported with an increase of 1% as compared to the previous week at an average of USD 4,122 per Mt. Indonesia black and white pepper were reported with an increase of 8% and 5% respectively as opposed to the previous week averaging at USD 2,193 per Mt for black pepper and USD 3,426 per Mt for white pepper. The increase of Indonesia pepper could be contributed to the increase of demand as well as the strengthening of Indonesian Rupiah against US Dollar (IDR 14,593 @ USD 1), an appreciation by 1% recorded. Malaysia black and white peppers in local market were reported with an increase of 1% respectively when compared to the previous week at an average of USD 2,301 per Mt for black pepper and USD 3,655 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with 3% deficit respectively when compared to the previous week averaging at USD 1,970 per Mt for black pepper and USD 2,745 per Mt for white pepper. Sri Lanka black pepper was reported with a significant increase of 8% as compared to the previous week and was traded at an average of USD 2,858 per Mt. China white pepper was reported stable and unchanged.

INTERNATIONAL  MARKET

International market was reported with a more positive outlook. India black pepper was reported with the same increase of 1% as compared to the previous week at an average of USD 4,390 per Mt. Indonesia black and white pepper were reported with an increase of 7% and 5% respectively as compared to the previous week averaging at USD 2,665 per Mt for black pepper and USD 4,044 per Mt for white pepper. Malaysia black pepper was reported with an increase of 2% when compared to the previous week at an average of USD 3,609 per Mt whilst Malaysia white pepper was reported stable. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper as well as China white pepper continued to be reported stable and unchanged.

US market this week was reported with the increase of price of black as well as white pepper nevertheless buyers held on to source from producing origins. Muntok white pepper for CF August/September was reported at USD 4.600 per Mt.

VIETNAM PEPPER MARKET UPDATE 27TH JULY 2020 – WEEK 31

 

 

Viet Nam
According to preliminary data of Vietnam Customs, pepper exports in June 2020 reached only 20,449 tons, less 9,902 tons, a sharp decrease of 32.62% compared to the previous month and down 10,236 tons, or 33.36% less than the same period last year 2019. The pepper export turnover in June reached $47.17 million, down $13.74 million, or 22.55% down from the May 2020 and down $28.04 million, or 37.28% compared to the same period last year.

Accumulated export volume of pepper in the first 6 months of 2020 reached 166,812 tons, down 10,046 tons, or 5.68% compared to the export volume in the first 6 months of 2019.

The average export price in June 2020 reached $2,306/ton, up 14.95% compared to the average export price of May 2020.

The same export, Vietnam imported a sharp decrease compared with 2019 when total quantity only 14,899 tons of pepper, including 11,283 tons of black pepper and 3,616 tons of white pepper. Compared to the same period in 2019, import volume decreased by 34.3%. Vietnam imports pepper mainly from Brazil, Indonesia and Cambodia. In which, the import from Brazil was 100% black pepper with 5,802 tons, down 34.9%; imports from Indonesia reached 5,528 tons (of which 2,057 tons were black pepper and 3,471 tons were white pepper), down 50.4% over the same period.

Until July 20th, 2020, Vietnam exported 9,942 tons of pepper and is forecast to export 16 - 17,000 tons in this month, bringing the total export volume in the first 7 months reached 183,812 tons (first 7 month 2019 exported 203.737 tons).

Pepper market in week 30^th 2020 has increased slightly by 2% compared to week 29. The main reason is that exporters focus on covering raw material to ensure time shipment has been done before.

In general, demand in week 30^th more than week 29^th when many different countries have gradually increased production again after a long time restrained due to Covid 19 (especially EU/India). Demand is still quite slow but many requests from the EU/US for long shipment orders from Q4/2020 until the end of 2021.

The market is still quite sensitive and the price trend is likely to be quite stable in the near future.

 Brazil
Almost the same previous week when only possible to offer very limited quantities but not for prompt shipment. Delivery time is mostly in September/October as a seller option. We can foresee Vietnam exporters will not be hedging raw material from Brazil from now.

 Indonesia
Currently harvesting but less offered. Prices are still higher than Vietnam both black and white pepper especially muntok white pepper.

IPC PEPPER MKT REPORT No. 30/20, 20 - 24 July 2020

MARKET REPORT
Market this week showed mixed response with Indonesia and Viet Nam origin recording a decrease.
In local market, Malabar black pepper was reported with an increase of 2% as compared to the previous week at an average of USD 4,088 per Mt.
Entering the harvest season as well as the slow demand, Indonesia black and white pepper were reported with 12% and 5% deficit respectively as opposed to the previous week averaging at USD 2,039 per Mt for black pepper and USD 3,262 per Mt for white pepper.
Malaysia black and white peppers in local market were reported with an increase of 4% and 2% respectively when compared to the previous week at an average of USD 2,275 per Mt for black pepper and USD 3,626 per Mt for white pepper.
Furthermore, Viet Nam black pepper was reported with 1% deficit when compared to the previous week averaging at USD 2,040 per Mt whilst Viet Nam white pepper remained stable and unchanged.
Sri Lanka black pepper was reported with an increase of 4% as compared to the prev ious week and was traded at an average of USD 2,644 per Mt.
China white pepper was reported stable and unchanged. 

INTERNATIONAL MARKET
International market showed a similar trend as the local market. India black pepper was reported with the same increase of 2% as compared to the previous week at an average of USD 4,355 per Mt.
Indonesia black and white pepper were reported with 12% and 5% deficit respectively as compared to the previous week averaging at USD 2,488 per Mt for black pepper and USD 3,858 per Mt for white pepper. Malaysia black and white peppers were reported stable and unchanged.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper as well as China white pepper continued to be reported stable and unchanged.

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SPICES MARKET UPDATE 6TH JULY 2020 – WEEK 28

PEPPER

Viet Nam

Pepper export in June reached 25.000 tons, valued at 56 million USD, down 17.6% in volume and 8% in value compared with May, 2020. It also decreased by 18.5% in volume and by 25.5% in value compared to June 2019.

The average export price of pepper in June reached 2,240 USD/ton, up 11.6% compared to May, but down 8.6% compared to June 2019.

From January to June 2020, pepper export reached 172.000 tons, value 365 million USD, down 2.9% in volume and 19% in value over the same period in 2019.

In the first 6 months of 2020, the average export price reached 2,127 USD/ton, down 16.6%  compared with the same period in last year 2019.

Market slow since last week with very little demand from overseas customers. Almost kept watching. China/USA/EU customers are very quiet and we have not seen any activities through border trade last week. However, the market is still in uptrend with increased price 50$/ton in week 27. Vietnam exporters/processors covering third quarter shipment in silent.  

Some demand for long time shipment (fourth quarter and 2021 shipment) but we heard all exporters withdraw.

Brazil

The stock very tight and not available for prompt shipment. Price up to firm daily when exporters prefer to cover short and just can offer a few boxes September onwards shipment.

Indonesia

We heard white pepper crop less over 50%. Exporters just offering a few boxes at higher Vietnam price to test market situation.

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PEPPER INDIA - IMPORT FEARS GRIP KOCHI´S PEPPER MKT

Kochi  July 03, 2020

Pepper prices declined by R2 per kg, with an average price realisation of R314 per kg, in Kochi on Tuesday 
Fear of pepper imports seem to have gripped the spot market in Kochi with the prices registering a R1/kg drop on Friday.

According to Kishore Shamji of Kishor Spices, there was pressure on local dealers to sell as there were more sellers in the market with imported pepper. The emerging situation has also forced Karnataka planters to liquidate their stock on the fear of imports even at MIP of R500 per kg, he said.

He pointed out that such a situation arose inspite of the government imposing minimum import price restrictions and the Customs Department being given powers in the last Budget to look into the price factor even for imports from bilateral countries.

The farming community fears that their existence will be at stake if such imports continue, he said. They requested the Prime Minister, Finance and Commerce Ministers to look into the matter seriously for the various representations submitted in this regard.

IPSTA Cochin Black pepper rate (R/kg): MG1: 326, ungarbled: 306; 500 G/L: 296 at an off-take of 26 tonnes.


Published on July 03, 2020


V Sajeev Kumar for
www.thehindubusinessline.com/markets/commodities

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VIETNAM MARKET UPDATE 1ST JULY 2020 – WEEK 27

JULY 1st ,  2020

Viet Nam;

The pepper market uptrend again with 45$ increase in the first day of July after falling in the past week. Despite the negative information and lower oversea demand compared to the previous months. However, in June, Vietnamese also exported roughly 24,000 tons, bringing the total pepper exported in the first 6 months of 2020 to reach 171,115 tons (6 months of 2019; 180,276 tons). With the commitment was done, we will not be surprised if the export volume in July, 2020 to reach 18-20,000 tons at least, bringing the total export volume in the first 7 months of 2020 to approximately 190,000 tons. An impressive figure when total production of 2020 pepper crop is assessed to decrease by 15-20% compared to the 2019 crop.

Some other information for reference;

- Export in the last 6 months of 2017 (July to December); 89,529 tons

- Export in the last 6 months of 2018 (July to December);  103,737 tons

- Export in the last 6 months of 2019 (July to December); 106,727 tons

- Let's wait and see how many tons will be exported in the last 6 months of 2020

Although China's demand is currently low, they almost do not participate in pepper much over 5 weeks. However, the current price remains stable and it will be difficult to reduce in the near future due to stock coming too tight. Prices are still low and farmers are not willing to sell more when market correction. If the price is reduced, farmers immediately offer to drip and stop offering.

Brazil;

Currently, Brazil stock finished now and cannot offer immediate shipment. The second crop of Brazil will start in end August/early September, so it can only be offered during September onwards 2020 shipment. However, it is likely that Brazilian exporters have already sold about 15 - 20% of the new crop in advance and will prefer to cover from farmers first instead of continuing to offer further shipment.

Indonesia;

We heard heavy rains and strong wind continuously so maybe delays in harvesting until beginning August. Prices are not attractive to the farmer and the 2020 crop may reduce production. Crop 2020 expected to export is very small with about 17-20,000 tons so farmers/exporters will not hurry to offer.

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