SPICES MARKET UPDATE 15th JUNE 2019

PEPPER:

Vietnam: Regarding to customs, Vietnam exported 148,515 tons of pepper, including 133,273 tons of black pepper and 15,242 tons of white pepper. Total export turnover reached 386.5 million USD. Compared to the same period of 2018, export volume increased by 34.8%, equivalent to 38,376 tons. The average export price of black pepper in the first 5 months of 2019 reached 2,537 USD/ton, white pepper reached 3,176 USD/ton. Compared to the same period of 2018, the export price of black pepper decreased by 23.1%, white pepper decreased by 36.7%.

China imported in the first 5 months of 2019 reached 36,038 tons, equivalent for 24.3% of total pepper export of Vietnam, increase of 128.4%, equivalent to 20,259 tons over the same period in 2018.

USA with 22,735 tons roughly 15.3%, increasing 3,893 tons. Markets with the next largest increase quantity as: Ireland increased 1,855 tons, India increased 1,563 tons, Germany increased 1,561 tons, Iran increased 1,417 tons, Nepal increased 1,396 tons, United Arab increased 1,112 tons, ...

Market increasing and limited offer in bulk from farmer/middleman. Chines has been buying White pepper significantly beside exporters covering raw material for June shipment. Even crop size 2019 of Vietnam is huge number 300.000 metric tons at least (our source and our opinion) but covered stock for June/July/Aug always recommendation even Indonesia crop is coming (June we foreseen total quantity export around 30 - 33k tons and first 6 months will be reaching roughly 180k metric tons). Vietnam currency suddenly stronger than USD, out of Vietnam Pepper exporters’ expectation.

Brazil: Offer still available to the market but limited and only further shipment. Vietnam/Indonesia only under high pressure when Para start for harvesting during Aug/Sept.   

Mr. Hien
Website: www.ptexim.com.vn

https://www.facebook.com/peppertrade.diffusion

IPC WEEKLY MARKET REPORT

Market this week showed mixed response.

In local market, Malabar black pepper was traded with a 1% deficit as compared to the previous week with an average of USD 5,039 per Mt.

India black pepper price in local currency was reported to experience a continuous drop from the beginning of the week and was closed at INR 347 per Kg on Thursday.

As the market resume after the Eid Mubarak Holiday, Indonesia black and white pepper were traded at an average of USD 2,104 per Mt and USD 3,506 per Mt respectively.

Sarawak black and white pepper was reported stable and relatively unchanged when compared with the previous week.
Recording a 2% spike as opposed to the previous week, Viet Nam black pepper became the only product which recorded an increase and was traded at an average of USD 1,890 per Mt. Whilst Viet Nam white pepper was reported stable.

Sri Lanka black pepper continued to be traded negatively, recording a 5% deficit as opposed
to the previous week while China white pepper was traded with an average of USD 4,775 per Mt.

In international market, India was the only origin to have recorded a deficit. FOB price of India black pepper was reported with a 1% deficit as compared to the previous week at an average of USD 5,327 per Mt.

Indonesia black and white pepper were traded internationally at an average of USD 2,567 per Mt and USD 4,138 per Mt respectively.
Malaysia black and white pepper remained stable and showed insignificant movement.

As offer dried up Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with a significant 4%, 4% and a 3% spike respectively as opposed to the previous week.

China white pepper was reported at an average of USD 4,975 per Mt in the international market.

US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

SALT

 

http://www.magicspices.co.il/Mediterranean-salt.html

CARDAMOM

Cardamom

The cardamom prices have reached record-high levels this year, similar to the price levels in the years 2010 and 2011.
Guatemala is already sold out for its main varieties since March 2019, which is quite extraordinary with still 6 months to go before the new crop.
It is still too early to give predictions on the new crop, but the new plantings, which started in 2017 and 2018 will mature only in 2020/2021,
which means that on the short-term (in the years 2019/2020) there will be a shortfall in production.
An important downward price correction is therefore not expected, especially taking into consideration that India’s crop is expected to be about 40% smaller than last year.

BRAZILIAN PINK PEPPER HARVEST IS ALMOST DONE...
Check for our offers: manager@peppertrade.com.br

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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Indian Black Pepper futures likely to crash as farmers decide to Start selling Spot Cargo

OPINION by Sham Nair


Kochi/Mumbai/New Delhi 09 March 2012

Indian Black Pepper futures which increased 40% in less than three weeks with heavy speculative activities by non pepper traders who hand in glove with the exchange and the commodity regulator manipulated the pricing of Black pepper seems to have exit the market transferring the load to retail investors mainly is likely to crash in the coming days .Of course there is a shortage of production of Black pepper in the country but the sharp rise in just 18 days is a case of sheer manipulation according to industry stalwarts. Vietnam the worlds largest producer and exporter is offering Rs 100/- kg below the Indian Pepper prices and still not finding buyers or rather attracting buyers in the European Union and North America who claims to have sufficient stock to cater their needs till June and not in a rush to buy even after seeing the wide difference in pricing . The importers feel that the prices in Vietnam still have to drop another 10% to make it attractive for them and the freak Indian situation is completely discounted by them.Indian futures its matter of time is going to fall like nine pins said a major importer who alone buys 20% of North American requirements .

With multi origin multinationals deciding to deliver the Valid stocks they received in the February deliveries back in March and the validity expired stocks received in February by some of them is reprocessed and deposited in the exchange platform another 3000 mt pepper will be offered for March deliveries this time as most of the traders would like to have a clean book as its the financial year ending for all in the country there are every chances the futures delivery in India nose diving in the coming days and might move back to Rs 360 per kg from the present 439 /kg for April deliveries according to pioneers and veterans in the trade.

With the very wide gap between Indian and Vietnam pepper the value added processors who left the import front a year ago are back with full vigour and before the end of the month about 1000 mt of black pepper is likely to reach in Mumbai/Chennai ports besides Cochin .

In the meanwhile with lack of export orders in hand many Vietnam companies are offering shipments for April and May at a discount is raising the eye brows of many as its heard the flows of new crop is in full swing prices are likely to drop in Vietnam in the coming days by 10,000 VND per kilogram ( usd 500 pmt )



Sham Nair