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 

VIETNAM PEPPER MARKET UPDATE 5TH OCT 2020 – WEEK 41

 

Vietnam; Exported roughly 19,120 tons of pepper in September bringing the total first 9 months of 2020 to 221,036 tons. Compared to the same period in 2019, the quantity of exports has decreased by 12.370 tons, equivalent to a decrease of 5.3%, the price today is 20% higher compared with the same time in 2019.

However, the prices, still much lower than farmer expectations while labor cost/interest rate is increasing yearly, have put pressure on increased credit debt, which has pushed most farmers in key growing areas of Vietnam into a difficult situation. In the past few years, pepper prices have been low, many farmers no longer invest in and take care of pepper plantations as before. As a result, although the acreage of pepper has decreased only around 10 - 15% but many pepper plantations have been exhausted make decline in overall productivity. A significant decrease in output from Vietnam starting this year and continuing to happen next few more years could contribute to a sharp decrease in the global supply of pepper even crop size may increase in Brazil/India next year..

Last week, pepper demand globally was low, but the Vietnam pepper pricing continued to move sideways with little change. After a long holiday in the first week of October in China, we expect global demand to increase in the next 1 or 2 weeks for 4th quarter shipment.

Cambodia; According to statistics, pepper prices decreased from 9-10 USD/kg in 2016 to 2.5-3USD/kg in 2018 and only 1.5-2 USD/kg in 2019-2020. However, production cost is still at 2.59 USD/kg. For this reason, many pepper growers and pepper processors have cut down on labor, limited maintenance on farms and some have even given up growing pepper to switch to other products.

Indonesia; continued to offer black pepper at quite competitive prices, but the price of white pepper was still very high compared to the whole market at 4,100$ - 4,250$/MT despite some downward trend due to low demand.

 

Brazil; Still continuing to offer in line, the density of pepper lower than expected were reported from many different importers in Vietnam and not easy to offer BASTA quality at the moment.

 

Malaysia; black and white pepper recorded stability with a slight decrease, averaging at USD 2,418$/ton and 3,802$/ton, respectively

Sri Lanka; black pepper recorded an increase of 1% compared to last week, averaging at 3,140$/ton

Chinese; white pepper was stable with a slight increase and traded at an average rate of 4,100 USD/ton.

India; black pepper was reported with an increase of 2% compared to last week, averaging at 4,776 USD/ton. New crop 2021 we heard maybe better than 2020.

 

CHECK OUR OFFERS @
https://offers-peppertrade.blogspot.com/2020/10/vietnam-pepper-offer-october-2020.html

MARKET REPORT - CLOVES

Comoros small crop of about 1500-2000 mts is almost sold, indications from that origin at $ 4650
Madagascar new crop in October is likely to be much smaller than last year, around 8000 mts, price for the same will start by middle October, 2020.
Indonesia has a good crop and is having steady demand from Middle East and Africa. The colour this year is not as good as all years . Current price indication is USD $ 4500/- PMT
Brazil's last year cloves crop was big, hence we estimat this year's crop will be a small one.
 

Currently, India and Indonesian cigarette companies are not active in the market, which is reflecting the existing weak sentiment in the market. As and when either of these markets become active, we may see firm tendency.

Sri Lanka
Srilanka crop starting in November expected to be above average.from reports from farmers it's anticipated to be around 2500-3000 tons, if weather conditions are favourable till harvest.
Harvesting begins in mid November and offers expected in mid December.
Quantity of oven dry LAL PARI will exceed last year as more and more farmers and traders installing more ovens.
Current prices are high compared to other origins due to lack of materials or rather poor arrivals, therefore there is no selling pressure on the side of farmers and traders.
But once the new crop arrival starts we can expect the prices to match the demand.