Friday 26
th Jan 2024
General: IDR has weakened considerably this week and made exports more viable. But the disparity continues. How long will this last
is anybody’s guess. It is raining heavily at the origins. We will gradually get more clarity on the crop situation and keep updating you
accordingly.
Cloves: Indonesian Clove is gradually taking the centerstage while Madagascar offers are getting fewer by the day. After three years
of crop failure, it looks like this year we should witness a reasonably good crop. There were about 4 months of extreme summer, with
temperature touching almost 40 degrees Celsius. Thereafter, rains have started past one month. This could be an ideal situation for a
good crop. In a month or so, we should start getting fresh arrivals. Crop is localized, to the extent that while one village has harvest,
the adjacent one does not have one. Hence, it is difficult to say at this point what will be the total crop. And for sure the levels will not
go down to that of 2020.
Price indication U$ 9,500
Mace: Demand is rising, and so is the local price. A harvest is expected now, but heavy rains and poor weather conditions have made
picking and drying more difficult. If rain continues for long, we will witness too many Brokens and Off Grades. In addition to that,
movement of cargo from origin to destination has become very difficult. Vessel delays are common.
Price indications:
Mace Grade A: $18,500/MT (PP)
Mace Grade B: $18,000/MT (PP)
Mace Papua HPS: $18,000/MT (PP)
Mace Off Grades: $13,000/MT (PP)
Nutmegs: Same as Mace.
Price Indications:
Nutmegs ABCD: $7900/MT (Jute)
Nutmegs SS (EU): $9000/MT (PP)
Nutmegs BWP (No Guarantees):
$5000/MT (PP)
Long Pepper: Past two months, there was an acute shortage. Now that rains have arrived, there will be fruiting, but maturity will come
only after about 2 months.
Price Indications:
Long Pepper A: $5750/MT (Jute)
Long Pepper B: $5500/MT (Jute)
Turmeric & Cubebs: Season is over, and old stocks are coming out now which are high in price.
Soumen
Pt. Mahalaya Agri Corp
Surabaya, Indonesia
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