Tuesday, May 30, 2023

Cloves Prices in India Likely to Shoot up in 2023


 

According to recent reports, global demand for cloves has been strong, leading to sustained high prices despite some recent increases. While production levels have been mixed across different origins, favorable 2022-23 crops in some areas have been offset by disappointing harvests elsewhere. As a result, the underlying supply of cloves is expected to become increasingly limited by April due to estimated exports so far and dwindling carry-over stocks.


The latest price indications from European traders suggest that Indonesian cloves are currently trading around $8,750 per tonne cfr Singapore, while Madagascar cloves are in the range of $8,700/tonne cif Singapore. Just a few weeks ago, Madagascar cloves were indicated at $8,400/tonne cif Singapore.


The Comoros cloves crop was reported to be very good due to favorable weather, with an estimated production of 6,000 tonnes, compared to a “normal” crop of about 3,500-4,000 tonnes in previous years. Meanwhile, the Zanzibar crop was described as normal, with an estimated production of about 4,000 tonnes.


However, the Madagascar cloves crop fell short of expectations, with a production of only 11,000-12,000 tonnes, compared to 22,000-23,000 tonnes in the previous year. Additionally, for the third consecutive year, the Indonesian crop was very short, with an estimated production of only 55,000-60,000 tonnes, which is less than half of what this origin achieves during a good harvest.


Brazil’s contribution to the global supply of cloves is negligible, with its 2022-23 crop estimated at no more than 2,000 tonnes. Most of this was sold to the US and South America, mainly for the production of cloves powder. The quality of this year’s harvest is said to be very poor.


In conclusion, while demand for cloves remains strong, the limited supply of the spice, due to mixed production levels and poor harvests in certain origins, is expected to lead to sustained high prices in the coming months.


https://www.turkeydalal.com/

Tuesday, May 23, 2023

Weak demand, surplus stock, cheaper imports hurt Indian cardamom farmers



Cardamom prices are hovering around Rs 1,000 per kg on average, which the growers say is insufficient as the cost of production has grown manifold.

 





Weak demand and surplus stock are damping Indian cardamom prices down. Prices are expected to remain low in the short term given the decline in exports and subdued buying in the domestic market, in addition to the anticipated increase in stocks thanks to a fresh harvest due in two months.

Cardamom prices are hovering around Rs 1,000 per kg on average, which the growers say is insufficient as the cost of production has grown manifold. Prices rallied briefly to Rs 1,700 per kg in early 2023, before falling again.

The supply of cardamom from Guatemala, its biggest producer, has dimmed the export prospects of Indian cardamom, which is comparatively costlier. Cheaper Guatemalan cardamom, which sells at about Rs. 800 per kg, has started to make its way to the Indian market as well, thus squeezing the demand for the Indian variety.

Per the latest Spices Board data, cardamom exports between April to February 2022-23 stood at 7,031 tonnes, worth Rs 828.50 crore, a decline of 25 percent in volume and 33 percent in value year-on-year. In 2021-22, exports had peaked at 10,572 tonnes, worth Rs 1,375.70 crore

"The demand isn’t strong enough to lift the prices. Cardamom from Guatemala is flowing to the Indian market and is mixed with the Indian variety and sold in north Indian markets and at auctions," said K S Mathew,’ Chairman, Vandanmedu Green Gold Cardamom Producer Co Ltd.

Last year, Guatemala produced about 45,000 tonnes of cardamom, 10,000 tonnes more than its normal output. Indian production was reported to be around 25,000 tonnes. While the Indian harvest comes to the market by the middle of the year, the Guatemalan cardamom arrives towards the end of the year.

According to growers, the next cardamom crop, which is harvested by August, should be good as there has been adequate summer rainfall and good south-west monsoons are predicted. "However, if the monsoons get delayed, it could hit production," said P C Mathew , Secretary, Cardamom Growers Association.

Cardamom cultivation has spread to fresh areas like Idukki district in Kerala, the largest producer of the spice in the country, raising the total output in the last few years. Unlike traditional areas like Vandanmedu, where there are big planters, the new regions have growers with relatively smaller land holdings of about 1 to 5 acres.

``The small growers have lesser expenses as they do not have labour costs as they themselves toil on the land. Hence, they are able to manage at the current price levels. The large estates need to fetch between Rs 1,200 to 1,500 per kg to run their operations as the cost of labour, fertilisers, and chemicals have all multiplied several times,’’ Mathew said. When cardamom prices spurted early this year, the large planters were able to sell some of their stocks.

Unless demand picks up, cardamom prices may fall further with the arrival of the fresh crop. While small farmers too will be affected if prices go below Rs 1,000 per kg, the low prices may help India to compete with Guatemala in the global market.

In the world market, Indian cardamom was costlier than the Guatemalan variety by $10-15 per kg till a few months back. According to exporters, Guatemala has exhausted the majority of its stock and the price difference has dropped to around $1-2 per kg now.

West Asian countries are the biggest buyers of cardamom and the consumption peaks before Ramadan season. This year, the Ramadan demand was more for the significantly cheaper Guatemalan cardamom. The recessionary trend in many countries also hit exports.

"If the prices remain low, then the demand for Indian cardamom can go up before Ramadan next year provided the countries in west Asia liquidate their existing stocks," said a major exporter.


PK KRISHNAKUMAR is a journalist based in Kochi.

Friday, May 19, 2023

IPC PEPPER MARKET REPORT WEEK 20 – KEY HIGHLIGHTS

 




The pepper market this week showed a mix response as some foreign exchange slightly weakened against the US dollar.

The Indian pepper price reported with a decreasing trend this week which partially contributed to the weakening of the Indian Rupee against the US Dollar (INR 82.43 @ 1 USD) or 1% depreciation.

Even though the Indonesian Rupiah weakened against the US Dollar (IDR 14,858 @ 1 USD) or 1% depreciation, both local and international prices for Indonesia reported with an increasing trend this week.

As the Malaysian Ringgit weakened against the US Dollar (MYR 4.52 @ 1 USD) or 2% depreciation, local prices for Malaysian pepper reported with a decreasing trend this week. Whilst, international price for Malaysian pepper continued to be reported stable and unchanged.

Local price for Sri Lankan pepper continued to be reported with an increasing trend for the last two (2) weeks which partially contributed to the strengthening of the Sri Lankan Rupee against the US Dollar (LKR 309.89 @ 1 USD) or 2% appreciation.

Only Vietnamese local white pepper reported with a decreasing trend this week. Whilst, the others remained stable and unchanged.




Tuesday, May 16, 2023

CARDAMOM

 




May is the last production month of the 22-23 season. New crop will begin until October 2023. 

The season has been a large one for Guatemala and India. Guatemala is still expecting to reach above 55k tonnes of production. A lot of the cargo is still on the way to destinations, and this is limiting upside as importers take profits. India is also a bit pressured lately with rumors of large carry over stocks and a good upcoming production. 

On the other hand, prices this season have reached low levels where additional consumption and demand has been triggered. Added to this is the possible impact of expectations on dryer weather (not yet there). Both of these factors are generating continued interest in the product and are therefore supporting prices.


Monday, May 15, 2023

IPC pepper MKT report - key highlights - NY Prices





Key Highlights

1 - The pepper market this week showed a rather positive outlook with no origin reported a decrease

2-  The Indian pepper price reported stable this week

3-  Indonesian black pepper price reported with an increasing trend this week. White pepper reported stable

4 - Both local and international prices for Malaysian pepper reported stable

5 - Sri Lankan local price for pepper reported with an increasing trend this week

6 -Both local and International prices for \vietnam continued to be reported wuth an increasing since the end of April

7 - In NY pepper prices continued to be reported with an increasing trend for the last 2 weeks which could be contributed to the increse of demand from China, Middle East countries and the US market. Furthermore, Muntok white pepper was reported at U$ 6,100 CF for May/June.


Prices in NY MAY 12











Vietnam Pepper Exports 2023 - Price trends


Vietnam Pepper Exports

According preliminary statistics of VPA,in April 2023, Vietnam exported 26,291 tons of pepper, 23,760 tons of black pepper and 2,531 tons of white pepper.
The average export price of black pepper in April was U$ 3,455/ton, white pepper was U$ 4,869/ton.

China continues to be the main export market for Vietnam pepper in April with 9,995 ton.

From January to the end of April 2023, Vietnam exported 103,018 tons.
Compared to the same period of the last year the  export volume increased by 29,7% equivalent tp 23,608 ton.
Exports to Asia increased by 77% accountinh for 60,2% of the market share, of which China continues to be the main market for Vietnam´s pepper.
In the first 4 month of 2023 , exports to China reached 35,914 ton.

Vietnam Pepper imports
From January 1 to April 30, 2023 Vietnam imported 10,184 ton of Pepper which main origins were:

Brazil 6,417 ton
Cambodja 1,715 ton
Indonesia 1,222 ton
Malaysia 194 ton



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JUST A REMINDER
PINK PEPPER HARVEST START END OF MAY
BEST QUALITY PRODUCT ARE ALWAYS AT THE BEGINNING.
CALL US IN ORDER TO ASSURE YOURS 







Friday, May 12, 2023

RGT Pepper mkt monthly update week 19



Vietnam Pepper spike in price occurred over  week 18 from initial 60s pricing ranged crossing into the highs of 70s; it went even firmer opening week 19 at 76,000 VND/kg levelling up to 77,500 VND/kg same day itself.

Thus, the current upward movement caused  an awakening of buying pressure.
Today, market reporting raw at 78-78,500 with less raw materials available.
This is a three-week straight high with 9% jump in price in just a span of one (1) week influenced by reported strong buying demand from China and Middle East alongside continued support coverage from large exporters.

Pepper price trend
Beginning of year, raw materials were being traded at lows of 59,500 VND/kg, following months, pricing was seen moving sideways with noticeable reservation on side of farmers who were consistently seen holding their positions.
Slowly, market gained its momentum during mid-April then unexpectedly hitting record highs this May month nearing to reach 80’s range–a 24% uptrend in price from beginning month to  today. 

Vietnam Pepper April Export
According to custom export data, Vietnam exported about 27.8K tons for the month of April 2023. This would mean about 107K tons of Pepper were  out already from Vietnam, the said number is higher of about 23% export volume achieved from last year same period recorded.

Indonesia
Indonesia pepper price also firm due to the influence of Vietnam and Brazil, expected decline in crop, alongside continuous appreciation of Indonesian Rupiah against the US Dollars, they have now reportedly implemented a more concrete currency trade system to shift away from USD.

Brazil Pricing Overview
The price of raw materials were up by 19% compared to beginning of this year but down by about 10%  in pricing average compared to last year same month period.

FOB price jumped by $400-500 pmt in span of 1 week with offers that remains very limited despite huge demand overseas. Farmers reportedly are seen prioritizing coffee harvest and would rather wait by July month before focusing on Pepper.

The Brazilian Real traded at 4.9 against US Dollars, a 9% local jumped from its lowest this year, influencing the raw material initial 13 BRL/kg pricing reaching the highs of 14,50-16 BRL/kg this week.

Brazil Pepper April Export Brazil was able to export about 8,563 tons of pepper this April, generating about 28,820 tons for the first 4 months of the year, 4% higher from last year period recorded.
The highest importer of Brazil Pepper is Vietnam, imported about 5,378 tons for the first four months of the year. Followed by Senegal at about 3,685 tons for the same period.


This report published by





 



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JUST A REMINDER
PINK PEPPER HARVEST START END OF MAY
BEST QUALITY PRODUCT ARE ALWAYS AT THE BEGINNING.
CALL US IN ORDER TO ASSURE YOURS