VIETNAM - SPICES MARKET UPDATE 12TH DECEMBER 2019

November, Vietnam has exported 16,484 tons of pepper, including 14,941 tons of black pepper and 1,543 tons of white pepper.  Export turnover reached 38.85 million $ with black pepper 33.98 million$ & white pepper 4.87 million $. Compared to the October, the export volume decreased by 3.9%, the turnover decreased by 5.8%.

Accumulated from Jan to November 2019, Vietnam has exported 271,067 tons including 243,174 tons of black pepper & 27,893 tons of white pepper with export turnover reached 682.9 million $. Compared to the same period in 2018, the export volume increased by 21.7%, equivalent to 48,281 tons, but the export turnover decreased by 6.8%, equivalent to 49.8 million $.

The average export price of black pepper in the first 11 months of 2019 reached 2,446 USD/ton, white pepper at 3,026 USD/ton. The export price of black pepper decreased by 23.4% and white pepper decreased by 21.3% compared to the same period of 2018.

China is Vietnam's largest pepper import with 56,095 tons, USA is 46,210 tons, follow is India, Germany…

Pepper market slightly firmer due to exporters covering December shipment, farmers/collectors offer limited raw material. USD is in weakening trend compare with Vietnam currency from this year.

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VIETNAM PEPPER MARKET UPDATE 25TH NOVEMBER 2019.

According statistics of the Vietnam Pepper Association/Customs, by the end of October 2019, Vietnam exported 254,583 tons, including 228,233 tons black pepper and 26,350 tons of white pepper, total export turnover reached 644.1 million USD.

Compared to the same period in 2018, exports increased by 21.1% in volume to 44,302 tons, but decreased value by 7.0% equivalent to 48.7 million USD. The average export price of black pepper in the first 10 months of 2019 reached 2,473 USD/ton, white pepper reached 3,019 USD/ton.

The export price of black pepper decreased by 662$/ton and white pepper decreased by 1,556/ton compare with the same period 2018.

China is still the largest import market of Vietnam Pepper in the first 10 months, reached 54,649 tons, up 22,991 tons, roughly 21.46% of Vietnam Pepper. However, in the last 2 months is only around 800 tons due to border trade continue is still stuck and increased a lots cost when clear customs. We foreseen this situation more difficult and maybe China customer have to official buying pepper pay full tax from Vietnam. This may also keep pepper prices stable/up or down not much and less volatile sudden as before.

The second largest is USA was 43,102 tons, an increase of 5,034 tons, accounted for 16.9%. Followed by Indian markets imported 17,785 tons, down 72 tons; Germany imported 9,605 tons, up 2,567 tons; Arabs imported 9,478 tons, up 912 tons.

Market is still moving very steady and firm from last week. The main reason were due to exporters big short for Light Berries to extra oil (density from 280 – 300gr/l) while Vietnam Light Berries  in this year very less than usual. Nepal and other Asia countries also buying December/Jan shipment beside China covering few boxes white pepper. However, USA/EU quiet at our side and asking big discount for first half 2020 shipment.

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Brazilian Pepper Exports 2019

From the IPC 3rd Quarterly Report:

Shipments from Brazil to top 5 Destinations Jan - Aug 2019

1 Germany 6,314 Ton

2 Viet Nam 5,977 Ton

3 United States of America 5,310 Ton

4 Morocco 4,387 Ton

5 Egypt 3,352 Ton

Quality levels from Brazil seem to have improved significantly over the past few years

Be it B2, B1 or ASTA etc. Customers reported globally that cargo from Brazil has bolder berries, cleanercargo and higher density.
This has helped uplift the image of the origin. This has certainly helped theorigin to get far better market access.










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IPC MARKET RPORT No. 37/19, 9 September - 13 September 2019

LOCAL MARKETS
Market this week showed mixed response.
In local market, Malabar black pepper was reported with an increase by 1% as compared to the previous week averaging at USD 4,604 per Mt.
Indonesia black pepper was reported with a 1% deficit as compared to previous week with an average at USD 1,923 per Mt, In local currency, Indonesia black pepper was traded with an average of IDR 27,000 per Kg decreasing marginally by IDR 500 per Kg. Whilst, Muntok white pepper was reported with an increase by 1% as compared to the previous week averaging at USD 3,419 per Mt.
Malaysian black and white pepper were reported stable averaging at USD 2,062 per Mt and USD 3,604 per Mt respectively.
Viet Nam black pepper was reported with a decrease by 1% as compared to last week, averaging at USD 1,829 per Mt. Whilst, Viet Nam white pepper was reported stable with an average of USD 2,839 per Mt.
Furthermore, Sri Lanka black pepper was reported with a 2% deficit as opposed to the previous week with an average of U SD 2,407 per Mt.
China white pepper was reported stable and unchanged.

INTERNATIONAL MARKETS
In international market, FOB price of India black pepper was reported with the same 1% increase as compared to the previous week at an average of USD 4,884 per Mt.
Indonesia black pepper was reported with a 1% deficit as compared to the previous week averaging at USD 2,364 per Mt. Whilst, Indonesia white pepper was reported with an increase by 1% as compared to the previous week with an average of USD 4,044 per Mt.
Malaysia black and white pepper continued stable and unchanged. Furthermore,
Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with a decrease by 2%, 1% and 1% respectively as opposed to the previous week averaging at USD 2,226 per Mt, USD 2,291 per Mt and USD 3,376 per Mt respectively.
China traded its white pepper stable in the international level with an average of USD 4,975 per Mt.

 

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IPC Market Report No. 36/19, 2 September - 6 September 2019

LOCAL MARKETS
Market this week showed mixed response with a rather negative outlook as only black pepper Indonesia reported an increase.
In local market, Malabar black pepper was traded with a 1% deficit as compared to the previous week with an average of USD 4,581 per Mt.
Indonesia black pepper was reported with a 2% increase as compared to previous week with an average at USD 1,939 per Mt, the increase of black pepper price in Indonesia could be contributed by strengthening of Indonesian Rupiah against the US Dollar.
Whilst, Muntok white pepper was traded with a 1% deficit as compared to the previous week with an average of USD 3,384 per Mt. In local currency, Muntok white pepper was traded with an average of IDR 48,000 per Kg decreasing marginally by IDR 500 per Kg.
Malaysian black and white pepper were reported with the same 2% deficit as opposed to the previous week averaging at USD 2,060 per Mt and USD 3,609 per Mt respectively as the price in local currency dropped to an average of MYR 8.6 per Kg and MYR 15.1 per Kg respectively.
Viet Nam black pepper was also reported with a decrease by 1% as compared to last week, averaging at USD 1,845 per Mt. Whilst, Viet Nam white pepper was reported stable with an average of USD 2,838 per Mt.
Furthermore, Sri Lanka black pepper and China white pepper were reported stable with an average of USD 2,451 per Mt and USD 4,775 per Mt respectively.

INTERNATIONAL MARKET
In international market, FOB price of India black pepper was reported with the same 1% deficit as compared to the previous week at an average of USD 4,858 per Mt.
Indonesia black pepper was reported with an increase by 2% as compared to the previous week averaging at USD 2,380 per Mt. Whilst, Indonesia white pepper was reported stable with an average of USD 4,003 per Mt.
Malaysia black and white pepper continued stable and unchanged.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were also reported stable with an average of USD 2,260 per Mt, USD 2,325 per Mt and USD 3,410 per Mt respectively. China also recorded a stable international trade for its white pepper with an average of USD 4,975 per Mt.

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IPC MKT REPORT 34/19, 19 August - 23 August 2019

Local Market

Market this week showed mixed response with a rather stable outlook as only Malaysia recorded deficit. In local market, Malabar black pepper was reported stable with an average of USD 4,692 per Mt. Indonesia black pepper was also reported steady with an average of USD 1,896 per Mt. Whilst, Indonesia white pepper was reported with an increase of 1% as compared with the previous week, averaging at USD 3,406 per Mt. In local currency, Muntok white pepper was traded with an average of IDR 48,500 per Kg increasing marginally by IDR 500 per Kg. This week, Malaysian black and white pepper was reported with a decrease by 3% and 1% respectively as opposed to the previous week averaging at USD 2,267 per Mt for black pepper and USD 3,840 per Mt for white pepper.
Viet Nam black and white pepper were reported stable and unchanged.
Sri Lanka black pepper reported with an increase by 1% as compared to the previous week averaging at USD 2,509 per Mt while China white pepper was reported stable with an average of USD 4,795 per Mt.

International Market
In international market, FOB price of India black pepper was reported steady with an average of USD 4,971 per Mt.
Indonesia black pepper was reported stable and unchanged. Whilst, Indonesia white pepper was traded with 1% increase as compared to the previous week with an average of USD 4,026 per Mt. Contrary to the farm gate price, Malaysia FOB prices for black and white pepper continued stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable averaging at USD 2,270 per Mt, USD 2,335 per Mt and USD 3,420 per Mt respectively.
China white pepper was also reported stable and unchanged averaging at USD 4,995 per Mt.

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REPORT ABOUT PRESENT BLACK PEPPER MARKET & TRENDS

IN THE LAST DAYS RE GOT TO KNOW SOME REPORTS ABOUT BLACK PEPPER MARKET.

INTERESTING READING FOR THE ONES OPERATING IN THIS TRADE.

Vietnam – Although fresh demand from the world market is missing, prices are holding steady to firm.
A record quantity has been exported: March (37,000 tons), April (36,000 tons) and May
(37,000 tons) bringing a total volume to approximately 143,000 tons till May 2019;
36% more exports than 2018 in similar period.

We have not observed such stunning export figures in our 26 years of trading history. Knowing 8 more months to new crop,
farmers and dealers are now in a comfortable position to hold remaining quantities without panic. This is very much evident from arrival of goods and gradual rise in raw pepper prices.  

Their comfort level will increase more once 60-70% of crop is out of Vietnam.
In May, raw prices remained between 44000 to 46000 dong/kg.
China keep supporting the pepper market and their pepper imports have risen to 70% from 2018 followed by USA and India to 27% and 10% respectively.

Buyers keep pushing for lower prices. We have not seen very aggressive offers for future shipments as all of them feel more risk than reward.
Destination markets need to consume extra volume imported during last 3 months.
Not to forget that combined Middle East and Asia has become one of the largest pepper
consumer market in recent years and their constant support to origin keep prices steady.

Limited numbers of orders in hand with exporters do indicate that coverage for second half is yet to come.
Low pepper prices and higher maintenance cost are pushing few farmers to cut trees and plant some other commodities.
Farmers in Chu Puh and Chu Sê districts—two key pepper growing areas who had invested for a dozen of pillars that covered one hectare are now selling the same number of pillars in lower cost as many of them have gone bankrupt.
Add to pot, young trees are also dying due to poor care of farmers, poor maintenance of current
vines and virtually no new plantation, crop size will reduce gradually while world consumption in general increases by 3-4% annually.
Expect volatile days in 2020 and beyond.
Imports to India via Nepal may halt due to 100% additional duty (from 10-20%) has been imposed recently in their annual budget presented in end May.

Indonesia – No bad news so far. Expecting similar or slightly better crop than 2018. However, no selling pressure or any aggressive pricing from numbered top-class shippers.

Brazil – It is interesting to note that for the first time, Brazil is not discounting to Vietnam prices. In fact, quotes from Brazil are now in line with Vietnam. This firmness is attributed to strong currency and depleted inventories.
Brazil too have exported large volume in the last 5 months (approx. 40,000 tons).
Their new crop from Para region to start in August – September.
We have not seen any selling pressure yet. First class shippers prefer to stay away from sharp bids.
If Vietnam continues to be firm, world demand may shift to Brazil which may help Brazil to stabilize further.
In general, there is resistance at low prices.
Demand from Europe has slowed down due to the new import regulation on salmonella and at the same time volume from Vietnam has increased considerably for European ports.

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