RGT Pepper Market Report Week 36/ 2021

 

Vietnam Pepper September first week demonstrated yet again a firmer market with raw material being traded at 78000 VND/kg advancing by mid-week at 79000-79500 VND/kg a notable 2.58% surge in just a week. 

Ending week 35, demand from White Pepper producers elevated influencing market to boost opening week 36 today at 80000 VND/kg. While shippers refused to participate, White producers are still very active until now.

First week month comparison from August to September starting off, latter displayed an increase of about 3.48% in pricing level despite the ongoing struggle in raw supply movements. Any slight pressure in demand keeps provoking prices to spike higher.

Indonesia still into a good trend at about $4250 FOB for Lampung despite a lack of demand. Muntok White remains at ease level of $6700-6800 FOB without pressure from shipper’s side. 

Brazil Ministry of Agriculture (MAPA) new ordinance to be published for Pepper products bound to European Union appearing to shake up Brazilian exporters. The challenging new set up to cater European Market is now dreaded to continue to show a diminishing impact in export volume since Salmonella issue came up last 2019.

Another commotion nowadays is centered to the worsening freight situation at Brazil Port most specifically from Vitoria Port of which space and container availabilities are seen very tight. 

With this in mind, some sellers were seen hesitant to accommodate buying interest in fear of backlash at a later stage in case situation will not ease down.

Ocean Freight Rate remain at historical high levels and are likely to skyrocket further by Q4. Selected carriers have already implemented GRI’s for September. Space and containers availability for USA is very tight. From Brazil, shortage of vessel carriers continues to create a huge impact in freight booking

It is difficult to predict exactly when a bull market will end as despite inevitable small dips, a slight movement has never failed to make pepper rise specially nowadays where tight supply in materials is obvious

RGT Pepper Market Report Week 36/ 2021 © Royal Golden 2021. All Rights Reserved.