RGT Pepper Market Report Week 23/ 2021

 

 Royal Golden Weekly Pepper Market Updates

 

Vietnam: To buy or not to buy?
That is the question nowadays as we finished off week 22 in a firm stable trend averaging at 71 dong for raw materials. Speculation is still at driver’s seat with an expectation of a higher price going forward taking note that despite a lack of support from sellers, raw materials remain strong on its standing with its back up support from locals and FDI keeping pepper at its pedestal.

What seems fascinating is that despite market clearly leaning towards a secure standing, suppliers are reluctant to partake at a current level. China and locals on the other hand continue to be an aggressive buyer triggering a possibility of an early outpace in inventory supply just almost halfway through of the year.

Wrapping up the week, locals remain active while shippers were seen idle in buying raw material but active in terms of selling.
Opening week today raw is at 71 dong firming up at 72 halfway through the day having a good demand from almost all major importers like USA, Europe, and Asia with a notable comeback of Nepal since last week owing to its government decision to finally rolled back its quota permits for pepper imports implemented early last year.

Farmers starting week are visibly slow in selling knowing that they are sufficiently covered with their Agri expenditure.

Indonesia
Indonesia should be set to kick-off and enter market anytime soon. However, according to sources, main concern persists with the crop damage.
The topic this time relates to the earlier estimate damage of 30-40% could transcend by 50%.
Muntok White supplier are seen hesitant this week with a very thin material available on hand.

Brazil
Brazil market is relatively dull entire week 22 with the commotion that affected price trend to increase of about $400-500/ton. Despite the marked up, very few to no active sellers were seen in the market nowadays. Same as Vietnam, Brazil’s footing in market is quite strong refusing to waver at any sign of pressure. Overall, Brazil economy accelerated by 1.2% in first quarter despite uncertainty surrounding pandemic with Brazil Real up by 5.15 per dollar, on track to close at its strongest this year.

Conclusion:
Market has shown all clear signs of bullish dominancy going forward. Best is to be on a side of market momentum seeing how intact it is nowadays. It is always best to take coverage early on rather than be on waiting and lose more after in a hope to outguess or outwit the market.

 

Royal Golden Weekly Pepper Market Updates