FROM VIETNAM

7 June 2007.

Dear valued Buyers,


Pepper is very interesting markets in this year, prices are up, up so much and make many people are very nervous to trade this item. Nobody think it is high like that!!! Increadible prices, from usd 2,400 per mt to USD 2,700 per mt and until sometimes up to usd 3,950 fob for 500 gr/l. so many buyers/traders are reluctant to buy pepper, many processing factories in EU decided not to buy at high prices and wait. From Feb 2007 they wait prices better in Mar but prices was up, up and they have waited until now is FH June 2007. some factories they use last berries to process and hope prices comeing down.

The Giant traders are have not better positions. They sold alots forward contracts at cheap and hope they can cover in Mar/April and they told many buyers in EU not to buy and wait, prices would be sure down in Mar/April however until end May/FH June prices are not really better!!! And they sold already, many contracts need to be delivered. Some traders in Origin they don’t deliver, the Big traders are negotiating with buyers to delay 2 or 3 months to help them not to get BIG LOSS, many short positions we can see from very BIG traders in HOLAND in Vietnam. Some buyers agreed but some asked them to ship on time since they need very much pepper to process!

And we heard that some BRAZIL sold forward positions at very cheap levels!!!

What they(Big traders) have to do now??? They pread news to all buyers in EU/American not to buy to press prices down! therefore there is not so many demands from EU/America. Buyers wait, another hand traders continue to buy to cover their positions which some processing buyers not to agree to ship pepper late.

So one question! How many tons VN have? If VN have more quantity, prices shud be down but as you see many times prices are easy alittle bit, and then it goes up shuddenly!!! Sine NOT MUCH PEPPER left!!! And one thing is the true is that NEXT YEAR crop is worst than this year so prices will be very high since the farms/trees are in insects postions and many trees are dead!!! And insects spread out to next farms with high speed so we can say 40% Less quantity in Crop Next Year 2008!!!

Thank you very much and we do hope buyers/processing buyers have right decision to purchse goods on time with correct prices.

Kind regards,
Phan Minh Thong
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PHUCSINH COMPANY LIMITED.