VIETNAM MKT UDATE No. 43/20, 19 - 23 October 2020 IPC

 

 

Market this week showed a mixed response. In local market, Malabar black pepper was reported stable with a marginal increase at an average of USD 4,383 per Mt. Indonesia black pepper was reported with an increase of 4% as compared to the previous week averaging at USD 2,039 per Mt. Whilst, Indonesia white pepper was reported with 1% deficit when compared to the previous week averaging at USD 3,636 per Mt. The decrease of Indonesian white pepper could be contributed to the ample supply in local market. Malaysia black and white pepper were reported with 3% and 2% deficit respectively as opposed to the previous week averaging at USD 2,180 per Mt for black pepper and USD 3,626 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with an increase of 2% and 4% respectively as opposed to the previous week to an average of USD 2,131 per Mt for black pepper and USD 2,958 per Mt for white pepper. Sri Lanka black pepper was reported with 2% deficit as compared to the previous week and was traded at an average of USD 2,996 per Mt. China white pepper was reported with significant increase of 8% when compared to the previous week and was traded at an average of USD 4,513 per Mt Locally.

International market also showed a mixed response. India black pepper was reported stable with a marginal increase at an average of USD 4,655 per Mt. Indonesia black pepper was reported with an increase of 4% as compared to the previous week at an average of USD 2,488 per Mt. Whilst, Indonesia white pepper was reported with 1% deficit as compared to the previous week averaging at USD 4,276 per Mt. Malaysia black and white pepper were reported with 2% and 1% deficit respectively when compared to the previous week at an average of USD 3,725 per Mt for black pepper and USD 4,940 per Mt for white pepper. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and unchanged. China white pepper was reported with an increase of 7% as opposed to the previous week and was traded at an average of USD 4,713 per Mt internationally. 

 

 

 

 

 

 

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. 

 

 

VIETNAM FLOODS UDATE AS FORM SATURDAY 17th

 

Situation Update No. 1 - Flooding in Central Viet Nam - Saturday, 17 Oct 2020, 10:00 hrs (UTC+7)

a. The combination of weather systems (Tropical Storms LINFA and NANGKA, and the Inter Tropical Convergence Zone combined with cold air) affected the Lower Mekong Region. This resulted in widespread flooding and landslides in multiple provinces of Cambodia, Lao PDR, and Viet Nam.

b. The floods, landslides, storms, and winds in Central Viet Nam affected an estimated 682K people, 136K houses, 10.4K hectares of rice, crops, and aquatic produce, 362 educational institutions, 14.7 km of roads, and the loss of 332K livestock (cattle and poultry). About 26.3 km of coastal landslide was also reported. Casualties were also reported (55 dead and 12 missing)
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**highest number reported as of 16 October 2020 source: VNDMA