VIETNAM PEPPER MARKET UPDATE 09 NOV 2020 – WEEK 46

 

Pepper exports in October reached 19 thousand tons, worth 48 million USD, up 4% in volume and 4.9% in value compared to the last month, compared with October 2019, up 11.9% in volume and 17.1% increase in value. In the first 10 months of 2020, pepper exports reached 239 thousand tons, worth 537 million USD, down 4.6% in volume and 15.2% in value over the same period in 2019.

Average pepper export price in October was estimated at 2,526 USD/ton, up 0.9% compared to September and 4.6% to October 2019.

Export of ground pepper has also achieved impressive quantity and continuous growth over the years, exports of ground black pepper increased by 37.5% in volume and 26.6% in value compared with the same period in 2019 reached 24.3 thousand tons, value 68.14 million USD. Ground black pepper to most major markets increased, including USA, UK, Netherlands, Japan, Australia, Thailand, Sweden, China, and Korea.

Many countries relax social distancing especially with the main import markets such as the USA, China, and India. After 4 months of moderate buying (July to October), we have foreseen China becoming more aggressive to stockpile during November. Otherwise, the Vietnam - EU Free Trade Agreement has opened up so we hope for many other opportunities for Vietnam's pepper in the coming time.

After being affected by many storms and tropical depressions, the weather in the key pepper areas of Vietnam was much better when the rainfall decreased significantly, the weather was generally quite favorable. However, the pepper market still steadily increased in price at week 45 as demand continued to increase in almost all markets ASIA/AFRICA/USA (except the EU) and especially increased strongly from China.

Due to the heavy rains, this year's crop in Vietnam is expected to be harvested at least 1 month later than previous years. The earliest harvest area in Daknong province almost only begins harvesting in January (Year 2017/2018/2019 harvested a little in early December).
The pepper prices were low last year, so the pepper string was uneven and sparse due to the lack of fertilizer and farmer care. This may cause the quantity of light berries to drop sharply in the 2021 crop (light berries and light berries to extra oil). In addition, pepper prices may stabilize and increase in 2021 that encourage farmers to have the psychology of storing, not harvesting early, and not picking green pepper corn like 2018/2019 to sell. The shortage of light berries pepper in the first quarter of 2021 is the possibility to make pepper pricing in the main season not come down as expected. Last 2 years, light berries prices have sometimes gone up 100 – 200$ within 1 – 2 days that make pepper raw material also moved up.

In addition, the harvest is likely to be slower next crop 2021, the demand for white pepper in all markets is very high while the raw materials harvested at the beginning of the 2021 season cannot be used for white pepper production due to low density. This is also a significant factor affecting prices in the coming time.

Other information; Several inquiries not only from overseas but also in local traders for next year shipment 2021 with the price is the similar prompt shipment for large quantities.

 

 

IPC PEPPER MARKET UPDATE - No. 45/20, 2 - 6 November 2020

 

LOCAL MARKET REPORT

Market this week showed a mixed response as only Indonesia was reported with an increase. In local market, Malabar black pepper was reported with 1% deficit when compared to the previous week at an average of USD 4,335 per Mt. Indonesia black and white pepper were reported with an increase of 1% and 2% respectively as compared to the previous week averaging at USD 2,065 per Mt for black pepper and USD 3,717 per Mt for white pepper. The increase of Indonesia pepper could be contributed to the strengthening of Indonesian Rupiah against US Dollar (IDR 14,529 @ USD 1), an appreciation by 1% recorded. Malaysia black and white pepper were reported stable with a marginal increase and was traded at an average of USD 2,123 per Mt for black pepper and USD 3,569 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported stable at an average of USD 2,215 per Mt for black pepper and USD 3,041 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 2,899 per Mt. 

INTERNATIONAL MARKET REPORT

International market also showed a mixed response as India black pepper was reported with the same 1% deficit when compared to the previous week at an average of USD 4,603 per Mt. Indonesia black and white pepper were reported with an increase of 1% and 2% respectively as compared to the previous week averaging at USD 2,520 per Mt for black pepper and USD 4,369 per Mt for white pepper. 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 also reported stable and unchanged. 

 

 

VIETNAM -MKT REPORT- CASSIA PRICE INCREASE STEADILY

 

 

 

Situation of cassia and aniseed have been very stressful, prices have increased daily, raw material is scarce.
After the Covid epidemic has been controlled, demand for aniseed and cassia increased sharply.
The strict control of cassia, aniseed material imported from China makes the goods more scarce.
China is actively buying aniseed flowers from Vietnam now.
Price of Cigarette Cassia – Split Cassia – Broken Cassia  increased sharply, price of aniseed increased even more strongly, even nearly doubling price at beginning of October.
Some warehouses regret that they did not buy material when price was low, when price has been up ad demand still tall, but they have no stock to sell.
It is forecasted that in coming time, when new crops have not yet entered (new crops of cassia and aniseed both start at March end and early April 2021), price of cassia and aniseed will continue to increase steadily. Only warehouses who gathered material at low prices can offer competitive prices. Some customers have a strategy of purchasing at a time of low price and accepting forward delivery, then this time they are winning big.