Cloves Market Latest News

 


Royal Golden's Cloves Market Latest News
By Parsram Dhirani

Madagascar - With weeks of slow progression of incoming new crop from field, goods are now reportedly seen starting to arrive in good flow from North and Tamatave areas. The arriving crop seems promising in terms of colours despite few areas reporting having small buds. According to shippers, few weeks from now, quality will be perfect alongside volume distribution from Tamatave that will finally increase. However, some buyers on site who are allegedly monitoring the field are still not able to procure enough cargo with export license that is still under renewal process. Most major sellers are still abstaining from selling until the license is released from their government. While some are able to offer, buyer must be willing to pay a premium price. Local price from North bushes still between MGA 25,000 – 25,500 while from Tamatave it is now at about MGA 30,000 with indicative FOB export price ranging from $7500 (pmt) and up.

Comoros from few days of holding their offers, finally came back in market by ending week 45. Price indication about $7200 pmt which is much supportive compared to Madagascar.

Sri Lanka still experiencing extreme weather events that could affect cropping patterns by December harvest. Price indication about $7100 -7200 pmt.

Brazil is completely absent.

At the moment, it is Madagascar versus Comoros. The latter as an active and leading contender compared to the other (at least) in terms of pricing. However, for those buyers who still value quality over price, choosing Madagascar is a ‘no brainer.’

On overall market sentiments, while others sporadically cover their urgent needs, the current economic condition overrides the optimism of some to openly participate and would rather stay on side line until the right buying time comes.