Cardamom prices show an increase, average price touches ₹1,858 a kg

Daily arrival for auctions is nearly 2 lakh kg and the average price is expected to touch around ₹2,000 a kg soon

December 28, 2023 - IDUKKI

THE HINDU BUREAU

After a four-month gap, cardamom prices started showing a positive trend, providing hope to farmers and vendors. Cardamom recorded an average price of ₹1,858 a kg on Thursday.

In the morning auction held by Mass Enterprises Limited, Vandanmedu, of the 1,08,018 kg arrived in 302 lots, 1,07,145 kg was sold at a maximum price of ₹2,742 a kg and average price of ₹1,858. At the evening auction held by Spice More Trading Company, Kumily, of the 82,647 kg that arrived in 241 lots, 82,426 kg was sold at a maximum price of ₹2,280 a kg and an average price of ₹1,783.

Johny Vattathara, managing partner of Spice More Trading Company, said that local and outside orders were behind the sudden increase in cardamom price. “The daily arrival of cardamom for auctions is nearly 2 lakh kg. Now the market is showing a positive trend and the average price is likely to touch ₹2,000 a kg soon,” said Mr. Vattathara.

According to Spices Board sources “the cardamom price increased around ₹200 a kg in three days. The sudden increase in price will be helpful to farmers. We are not sure how many days the present trend will continue.”

According to farmers, normally the first crop arrives at the market in July last week. Due to the absence of proper southwest monsoon rain, the crop season was delayed and there was a fall in production. After the robust northeast monsoon, the farmers expect average production.

Shaji Thakidipurath, a cardamom farmer and vendor at Pathumury in Kumily, said the price increase was expected to continue in the coming days. “The price increase will be helpful to cardamom farmers who stocked the produce,” he said.

Cardamom Planters Federation chairman Stany Pothen Nedumpuram said that following inadequate southwest monsoon, a fall in cardamom production was expected and the average price crossed ₹2,200 in the first week of August. “The price fell following good northeast monsoon. Most plantations received average crops and the harvest season may last till February,” he said.

AGAIN ? - Supply Chain Management Crisis coming back ?

Swiss-based MSC Mediterranean Shipping Co, the world's largest container shipping company, will stop using the Suez Canal after an attack on one of its ships, it said in a statement Saturday.

Yemen's Iranian-backed Houthi movement has in recent weeks been attacking vessels in the Red Sea — a crucial route allowing East-West trade, especially oil, to use the Suez Canal to avoid the extra time and expense of circumnavigating Africa.

The Liberian-flagged MSC Palatium III was attacked on Friday with a drone in the Bab al-Mandab Strait at the southern end of the Red Sea, according to the Houthis.

The MAERSK shipping line the second largest shipping line from Denmark and the Hapag-Lyod, the german  shipping company also stopping their container vessels through the Suez canal passage.

Means we can expect huge delay in shipping to and from Europe. This can increase the freight cost also. This will affect the income for Egypt as the big fee they are collecting from each container ships.

Soaring demand and falling yields propel large cardamom price to double

 

Nepali traders expect the spice to break price records in the upcoming months.

Large cardamom prices have more than doubled in the last six months due to a sharp drop in production and growing international appetite for the prized spice.

Traders say that the price of large cardamom, one of the most expensive spices in the world, is heading upward. If the current trend continues, it is expected to break the price record in the coming months, traders say.

This week, the price of the spice reached Rs1,875 per kg in the market in Birtamod, Jhapa. It was at Rs925 per kg in June.

Khem Adhikari, a trader in Phidim of Panchthar, the eastern hill district, said that high-quality large cardamom is being traded at Rs1,875 per kg, while medium-quality spice is fetching Rs1,825 per kg.

The normal quality is being traded at Rs1,800 per kg.

Large cardamom is grown mainly in the eastern hills of Nepal, and Birtamod of Jhapa is a key trading town for the region's agricultural produce.

In 2014, large cardamom hit an all-time high of Rs2,500 per kg. Since then, prices had been going steadily downhill, sinking to a low of Rs700 per kg in mid-July.

Large cardamom is a high-value cash crop and a major source of income for farmers in the mountains and hills of eastern Nepal.

Despite the rise in prices, farmers, however, are not happy.

Madhu Raj Kurumbang, a large cardamom farmer in ward 8 of Phalelung rural municipality in Panchthar, said farmers are not getting fair prices for their produce. “Prices of the spice normally increase after farmers sell them.”

Large cardamom is harvested from mid-August to mid-November. At the start of the season this year, the spice was being traded at Rs1,250 per kg, according to the Federation of Large Cardamom Entrepreneurs Association of Nepal.

“The price of large cardamom has been soaring due to the decline in production in all three countries—Nepal, India and Bhutan,” said Nirmal Bhattarai, president of Large Cardamom Entrepreneurs’ Association of Nepal.

He said that Nepal’s large cardamom output has dropped by 60 percent year-on-year due to drought and pest problems.

“We expect that the price will reach Rs2,000 per kg within a few weeks.”

“There is a high demand in the international market following the low production,” said Bhattarai.

India is the biggest buyer of Nepal’s large cardamom, absorbing 99 percent of its exports. The spice is re-exported to Pakistan and the Middle East where it fetches high prices because of local preference for the Nepali product.

Pakistan is the largest importer of large cardamom, purchasing roughly 60 percent of India’s large cardamom exports. Large cardamom pods are used by the local Muslim community in biryani, a popular Pakistani dish, as a symbol of prosperity and wealth.

According to the Agriculture Ministry statistics, Nepal produced over 10,000 tonnes of large cardamom in the last fiscal year. In 2019-20, output was 9,545 tonnes, which dropped to 8,289 tonnes in 2020-21. In 2021-22, production rose slightly to 8,714 tonnes.

Nepal is the largest producer of large cardamom, accounting for 68 percent of the global production, followed by India and Bhutan.

Elsewhere in the region, the spice is grown in Sikkim, Darjeeling and Bhutan. Large cardamom was introduced in Ilam from Sikkim in 1865.

Ilam, Panchthar, Taplejung, Sankhuwasabha, Tehrathum, Bhojpur and Dhankuta districts are the major large cardamom-producing districts in Nepal.

Deepak Nepal, a large cardamom trader, said apart from India, demand from Bangladesh has been growing lately.

Nepali traders were also making efforts to export large cardamom to Bangladesh directly through the Kakarbhitta-Panitanki-Phulbari route. The three points are located in Nepal, India and the India-Bangladesh border respectively.

The 44-km route provides the shortest access to the Bangladeshi border point of Banglabandha for Nepal's trade with and through Bangladesh.

The large cardamom export increased by 71.94 percent year-on-year in the last fiscal year.

According to the Department of Customs, Nepal exported 9,990 tonnes of large cardamom worth Rs8.27 billion in the last fiscal year compared to 5,367 tonnes worth Rs4.81 billion in 2021-22.

Nepali large cardamom or black cardamom has a distinct flavour profile due to a specific method of postharvest drying in bhattis (ovens), which explains the roasted smell and taste.

The smoky flavour would overwhelm a sweet cake or pudding, but in a spice rub for roasted meat or a full-flavoured stew, it imparts a smouldering depth no other spice can, according to experts.

Laxmi Gautam

Published at : December 13, 2023

https://kathmandupost.com/money/2023/12/13/soaring-demand-and-falling-yields-propel-large-cardamom-price-to-double

BLACK CARDAMOM X GREEN CARDAMOM

 

The Differences between Cardamom Varieties

Cardamom is the third most expensive spice in the world, after saffron and vanilla. You can find two main varieties of cardamom that are grown in different parts of the world. Cardamoms are one of the most commonly used spices in Indian cooking,
It's all over India - in our masala chai and garam masala, and most Indian desserts. They are also used in many other cuisines like Middle Eastern, Moroccan, and Scandinavian.

Green cardamom is grown in India, Guatemala, and Sri Lanka. This variety has a sweet taste with a hint of lemon flavor.

Black cardamom often goes by the name brown cardamom or large-sized cardamom. It's a type of cardamom that originates in Eastern Nepal, Sikkim, and Darjeeling district in India. This variety has a a wonderful scent of smokiness and camphor.

What is a Cardamom Pod And How Does it Taste?

A cardamom pod is a spice that is obtained from the cardamom plant and it has a very distinct taste. It is used in many different cuisines and dishes around the world. The pods are picked when they are still green and then dried to make them brown.

The pods can be used whole or ground up for various purposes such as flavoring curries, gingerbread, coffee, tea, cakes, cookies etc. Cardamom pods can also be used to make tea by boiling water with the pods in it.

Processing

While the green cardamom comes from the species Elettaria cardamomum. 

The black cardamom belongs to the species Amomum subulatum. 

The main difference between these two cardamom varieties is the way they are processed. 

When it comes to green cardamom, the pods are harvested before maturity. 

The pods of black cardamom are harvested much later and are also dried over large fires.

Green cardamom is grown in India, Guatemala, and Sri Lanka. This variety has a sweet taste with a hint of lemon flavor. 

Black cardamom often goes by the name brown cardamom or large-sized cardamom. 

It's a type of cardamom that originates in Eastern Nepal, Sikkim, and Darjeeling district in India..

Brazil - Award-winning coffee sells for record price at auction

 

Japanese coffee shop buys Geisha coffee, from Fazenda Rainha, for R$84,500 (U$ 17,175 ) per bag

By Isadora Camargo — São Paulo

12/13/2023 05:03 Updated 5 hours ago

Geisha coffee, from Fazenda Rainha, from Orfeu Cafés, in São Sebastião da Grama (SP), was sold for R$84,500 per 60-kilo bag to the Japanese Sarutahiko Coffee, in the auction of the winning coffees of the Cup of Excellence 2023 The amount paid was the highest in history for a Brazilian dry coffee. The Japanese company won three bags.

The Geisha batch was the winner of the dry category of the competition, which is organized by the Brazilian Specialty Coffee Association (BSCA) in partnership with the Brazilian Export and Investment Promotion Agency (ApexBrasil) and the Alliance for Coffee Excellence (ACE). Another 29 samples awarded in the Cup of Excellence participated in the auction on the 6th.

Japan is among the top ten buyers of Brazilian coffee, with 2.07 million bags between January and November this year, according to Cecafé.

The president of Orfeu, Ricardo Madureira, attributed the value achieved at the auction to the quality of the Geisha type and the dry method. “It is more difficult to achieve high quality in the dry process, because the grain is not washed after harvest. This requires getting the coffee collection right. By drying in the plant, the sugar from the pulp passes into the grain and produces a sweeter drink”, explained the executive.

Being more than 1,500 meters above sea level, coffee requires regenerative care, such as cover crops. The farm also maintains 35% of the native forest in the coffee plantation. “All of this increased the price of coffee at auction,” he said.

The auction raised R$1.5 million, after almost nine hours and three thousand bids. The value was reflected in the average price of the lots, which reached R$ 13 thousand per bag.

The second highest bid was given to wet coffee (peeled, pulped or demucilated cherry) from Fazenda Rio Verde, owned by Ipanema Agrícola, located in Conceição do Rio Verde (MG). The bag was purchased for R$40,700 by Grupo Cafeza, from Brazil.

The third highest bid was for fermented coffee from the same property, which reached R$32,700 per bag. The batch was acquired by the Chinese Decameron Coffee.

Companies from Germany, Saudi Arabia, Australia, Bulgaria, South Korea, the United States and Norway also purchased coffees, which Madureira considers a foreign 'awakening' of Brazilian beans. For him, acclaim helps transform internal consumption, generating a ritual similar to wine tasting.

Aware of changes in consumption, Orfeu wants to increase its participation in the specialty coffee segment, launching product lines in Brazilian retail.

The company's president revealed that, in 2024, a special edition of the batch purchased by Japan will be prepared for sale. The brand also started selling three new types of coffee in premium supermarkets (acauã, arara and japi) as part of its growth strategy, projected at 30% for 2024.FF

Café premiado é vendido por preço recorde em leilão (globo.com)

Quick highlight spices market update 11th December 2023 – Week 49.

 

 

The price of pepper has increased by 4% compared to last week. This means that the price of black pepper has increased by 14.5% since the beginning of November, despite the fact that the largest consumer of Vietnamese pepper, China, has not made any purchases for over a month. The main reason is the dwindling stock levels in the last months of the year, while the main harvest of 2024 is still over 2 months away.

BRAZIL Black Pepper December 2023

Brazilian black pepper prices are on the rise in recent weeks, due to the lack of stock and since Brazilian farmers are not willing to sell what's remaining of their product in lieu of the severe drought in growing regions. 

The harvest in Para state in Brazil has just finished. The region is currently enduringa drought, with the most significant impact anticipated for the 2024 crop.

Brazil exported 58,000 MT, 4% down from the last year.
Volumes partly shifted from the US and EU to Africa and Asia.
Excess rain in Dec-Feb hurt the Espirito Santo (ES) crop, while Para, where the harvest has just finished, is now suffering from a drought linked to El Niño. 

Finnaly since the last weekend prices exploded and the local market is very volatile, with prices changingby hour, making impossible long lasting firm offers.

Cardamom - Guatemalan crop is expected to be 35% shorter than last crop

December 6, 2023

Guatemalan crop is expected to be 35% shorter than last crop, due to severe dry weather which has damaged the crop. Arrivals have started during November, so about 1.5 months late. Arrival volumes are increasing, but are still well below normal levels. Because of the above, prices have strongly increased vs last crop. 

Quick highlight spices market update 27th Nov 2023 – Week 47.

 

 

The price of black pepper continued to show a clear upward trend in November, with an increase from 69,000 VND (1st/11/2023) to 73,500 VND (26th/11/2023), corresponding to a price increase of 6.5% in November. The main reason for this is the strong demand from major import markets for end of year 2023 and Q1/2024 shipment.

This year’s harvest season in Vietnam is expected to be relatively similar to the previous year, with a few small harvest locations in early January and the main harvest season starting in late February or mid March 2024. This means there are still about 3 months until the 2024 harvest season.

 

Problems with Black Pepper crop in Brazil

 
Want to bring to your attention a message we received yesterday from one of Brazilian exporters focusing on market situation in Brazil now:

We would like to inform about the pepper market nowadays, in which we are facing difficulties to find suppliers willing to sell, or with stock.

The main cause of this situation is the heatwave that is happening , from the phenomenon named El Niño" that is causing a extreme temperatures in Brazil, including producing areas, and as we stated before, pepper can only resist 32 celsius, and in some areas is reaching 43. 

Suppliers are very concerned regarding their production that seems to be affected for next years and this small crop we are facing in  the end of the year. 

It’s being extremely difficult to find pepper on the market to buy nowadays  

As we are seeing no supplier is offering and they are bringing price up since of this causes i’ve mentioned.

Therefore, new contracts placed after this week will only be shipped in January 2024.

Việt Nam's pepper inventory for 2024 is estimated the lowest level

 

 November 13, 2023       

HÀ NỘI — Việt Nam's pepper output of the 2022-2023 crop has all been exported, so the amount of pepper inventory for 2024 will be the lowest level in recent years, according to Việt Nam Pepper Association. 

Việt Nam's pepper export volume in 2023 is expected to reach 250,000 tonnes, including volume from import and inventory from the previous year. 

The average export price in the first 10 months of 2023 reached $3,553 per tonne of black pepper, and $5,082 per tonne of white pepper.

The export price of black pepper in October, 2023  reached 3,664 USD/ton, White pepper reached 5,211 USD/ton,

Hoàng Thị Liên, chairwoman of the Việt Nam Pepper Association, said that despite difficult market conditions, the industry has achieved good export performance in the first 10 months of this year. 

In the last months of the year, the exports could depend on the amount of inventory carried over from previous years. 

The association forecasts that global pepper output in the 2023-2024 crop is stimated to decrease. 

However, the reduction in volume is still lower than the decrease in global consumption demand, so it is forecast that pepper price is unlikely to increase continuously in the long term, according to the association.

The domestic businesses also estimate that Việt Nam's output in the 2023-2024 pepper crop will decrease by about 10-15 per cent to 160,000-165,000 tonnes. 

Excluding China, the upcoming consumption demand of countries around the world may decline due to the impact of the economic crisis resulting from the Russia-Ukraine and Israel-Palestine conflicts. The world economic recession decreases purchasing power in the future.

Besides that, consumption of major markets, including the US and EU - key export markets of Việt Nam, are unlikely to recover in the short term.

Analysts estimate that next year's output is expected to decrease in India by 20 per cent, Indonesia by 20-30 per cent, Việt Nam by 15 per cent, and Brazil by 15 per cent.

Meanwhile, the Ministry of Industry and Trade's Import-Export Department, forecasts that Việt Nam's pepper exports will remain at a low level because the domestic supply is no longer abundant and consumption demand in the US and EU markets has not really improved. 

At present, the amount of exported pepper originating from Việt Nam has run out. The total amount of inventory and import is about 80,000 tonnes, including the inventory of about 30,000 tonnes. 

In the last months of this year, the enterprises will export the imported and pre-existing inventory pepper with a volume of about 50,000 tonnes. 

In the long term, Việt Nam's pepper supply is forecast to be in short supply due to fierce competition from other crops such as durian and passion fruit, according to the association. 

Liên said that if the cutting of pepper trees for growing fruit trees is prolonged, Việt Nam may face a pepper supply shortage in three years. That may cause farmers to miss out on trading at high prices.

Exports in 10 months

China was Việt Nam's largest pepper export market with a volume of 57,723 tonnes in the first 10 months of 2023, accounting for 25.8 per cent of the total export, according to preliminary statistics of the Việt Nam Pepper Association.

The volume rose by 265.3 per cent over the same period of last year. 

However, China's import volume in recent months tended to decrease after purchasing enough pepper volume in the first two quarters of the year.

The US was Việt Nam's second largest pepper export market with 42,600 tonnes, accounting for 19.1 per cent of the total and declining by 6.3 per cent over the same period.

Meanwhile, Europe occupied 19 per cent of the total exports, decreasing by 4.8 per cent over the same period.

The pepper exports also declined by 8.5 per cent to 10,538 tonnes to India, and 29.8 per cent to 10,025 tonnes to UAE market over the same period. 

However, the two markets of Turkey and France recorded a sharp increase in pepper exports of 69.7 per cent and 31.1 per cent, reaching 3,900 tonnes and 3,097 tonnes, respectively. 

Other markets had high growth in pepper exports included the African market (up 9.9 per cent), Egypt (30.1 per cent), South Africa (10.5 per cent) and Senegal (35.6 per cent).

The association reported that in October 2023, Việt Nam exported 19,193 tonnes of pepper, earning $72.7 million. The figures rose by 15.4 per cent in volume and 17.3 per cent in value. 

The average export price in October 2023 reached $3,664 per tonne of black pepper, and $5,211 per tonne of white pepper.

In the first 10 months, Việt Nam exported 223,578 tonnes of pepper, including 200,571 tonnes of black pepper and 23,007 tonnes of white pepper.

Total export turnover reached $750.8 million, including $640.2 million of black pepper and $110.6 million of white pepper.

Việt Nam gained an increase of 14.6 per cent in volume but a reduction of 11.7 per cent in value compared to the same period last year.

The average export price in the 10 months of 2023 reached $3,553 per tonne of black pepper, and $5,082 per tonne of white pepper. They declined by 17.6 per cent for black pepper and 15.6 per cent for white pepper compared to the same period last year.

Leading Exporters this year

Nedspice was the largest pepper export enterprise in 10 months with a volume of 15,462 tonnes, an increase of 8.5 per cent over the same period in 2022.

Some other leading export enterprises under the Việt Nam Pepper Association, included Olam Việt Nam (15,326 tonnes); Pearl (14,144 tonnes); Phúc Sinh (12,720 tonnes) and Haprosimex JSC (9,015 tonnes). — VNS

Complied by Hoàng Hà
November 13, 2023     

           

Brazil Pepper Pricing Overview

Brazil Pepper Pricing Overview

Affected by the depreciation of the Brazilian real against the US dollar, pepper offers continue to be more attractive  with domestic raw material prices that was last seen at  13,50 BRL/kg from ES and about 12,5 BRL/kg from Para region. 

Brazil Pepper Plant Production 

Brazilian farmers are deeply concerned about the lack of  rain affecting dying plants which Para region have reported recently.

The drought weather condition described now as “the worse the state has ever seen’’ is very alarming and  could certainly lead to pepper plant high percentage failure  rate affecting the next incoming production volume.

Year-Over-Year (YOY) First 10 Months BR Export Volume

Brazil managed to export about 7,376 tons for the month of October bringing a total of about 65K tons for the first ten (10) months of the year which is down by about 6% when compared to last year’s same period recorded. 

Vietnam still the top importer from Brazil at about 13,7k  tons, followed by UAE at 6,1k ton, Morocco at 5,4k tons,  Senegal at 5,2k tons, Pakistan at 5,1k tons. 

Both Vietnam and UAE were seen with a low import percentage of about 12% and 18% respectively when compared to last year’s import volume recorded. 

Pepper Market Report Week 44 – 2023

 

As market struggles to find support overseas, Vietnam was reportedly seen with a decline last week by 1,4% for raw material. However, over the weekend, China reappears prompting market to firm up a bit at today’s opening. Exporters remain on a sideline as USA and EU demands are still elusive for spot coverings as most seems to be eyeing now for new crop next year.

Indonesia – speculators last week are in a market to sell as prices also are seen softening a bit with depreciating local currency that has been beaten by negative sentiments since last month. But then Muntok stock position is not that promising, with a volume that could be just good enough for local consumption. 

Brazil although price is supportive compared to others, origin’s current state is not sitting well. The country is now in midst of experiencing severe drought in history due to lack of rain. It is much worser in Amazonas as its port Manaus had dried the water to even allow ships to dock. Para’s crop reporting crop failure and although ES is still surviving, the domino effect of the whole situation very soon can cause more shipment delays and cancellation which these days has been a dilemma by almost all exporters. 

Royal Golden Trading, Dubai

The 51st Annual Sessions and Meeting of the IPC

 

THE DATE IS APPROACHING, ONLY 15 DAYS LEFT TO SAVE USD150!!! MAKE SURE YOU DON'T MISS YOUR SPOT AT THE BIGGEST GATHERING AND EXHIBITION OF THE PEPPER/SPICES INDUSTRY FOR 2023! The 51st Annual Sessions and Meeting of the International Pepper Community and International Spices Exhibition is approaching, scheduled from 6 - 9 November 2023 at Pullman Hotel Kuching Sarawak, Malaysia with distinguished International Guest Speakers of renowned figures in the global pepper industry. This year, the grand 51st IPC ASM ISE will gather the important stakeholders of the pepper industry to Kuching Sarawak, Malaysia to deliberate on the recent updates  of the global pepper industry as well as way forward and future strategic ideas of the industry. The following are the country-wise delegation shares:  The following are Exhibitors representing the top names of the Pepper/Spices industries: REGISTER NOW BEFORE 31 OCTOBER 2023 AND JOIN THE INSTRUCTIVE GATHERING OF THE PEPPER INDUSTRY FOR 2023! SEE YOU IN KUCHING, SARAWAK! #TOGETHERWEARESTRONGER

Brazil Pepper Pricing Overview

 

Brazil still seen stable over the past few weeks with local currency that is under depreciation pressure over US dollars Brazil's real BRL, fell between 0.3% and 0.7%. Though in a good note, exporters’ woes with the rising production and shipping cost for Pepper could balance out the market pricing. 

Brazil Pepper Plant Production
Espírito Santo as the epicenter of pepper production reportedly seen with plants dying due to weather condition with the degree of the damage that is still unknown. On the other hand, Pará harvest reportedly plummeted by about 20%, due to high temperatures and lack of rain.

Brazil Pepper September Export
Brazil exported about 7,244 tons of pepper for the month of September, with about 57,652 tons export volume for the first nine (9) months of the year which is 4% lower as compared to last year’s same period covered.

Brazil Pepper Export Destinations
Vietnam still a top importer of Brazil Pepper, managing to import about 11,867 tons from Q1-Q3, down by about 9% compared to last year same period. UAE, top two importer at 5,464 tons, down by about 19% from last year as well.

Germany and USA both import volume dropped down by about 60% and 92% respectively owing to the stricter import regulation due to Salmonella issue.

This report is part of  
RGT Pepper Market Report – October 2023
Royal Golden Trading 2023. All Rights Reserved.

Vietnam market update 16th Oct 2023 – Week 41.

 

From January 1 to September 30, 2023, Vietnam exported 204,385 tons of pepper, of which black pepper reached 183,475 tons, white pepper reached 20,910 tons.

Total export turnover reached 678.1 million USD, black pepper reached 578.2 million USD, white pepper reached 99.9 million USD.

Compared to the same period in 2022, export volume increased by 15.3%, equivalent to 27,164 tons, however export turnover decreased by 13.4%, equivalent to a decrease of 104.5 million USD.
The average export price of black pepper in the first 9 months of 2023 reached 3,539 USD/ton, white pepper reached 5,068 USD/ton, down 15.3% for black pepper and 14.2% for white pepper respectively over the same period 2022.

 

Pepper Market Report by Royal Golden - Week 39 – 2023

 

Amid gloomy demand overseas, market remained relatively stable for Vietnam. Reported small volume of buying activities for prompt needs from Asian buyers occurred over the week. 

While other major importing countries who still are seen indecisive to take positions are reportedly on a sideline waiting for selling pressure to take place.

Muntok with a slight decline last week, it is seen stable today with its very limited supply owing to crop failure that export volumes are also hugely suffering.

Brazil stable to firm with active demand from Asian buyers. Q4 at its peak season, this origin is experiencing shortage for empty containers with some carriers rolling cargo due to high volume of shipments. Reported vessel utilization at a very healthy level (90-95%) prompting freight rates to be seen moving at an upward direction.  

India -Rising imports impact black pepper prices

 

Pepper imports in August were unusually high at 3,800 tonnes

Rising imports have kept black pepper prices steady in the domestic market over the past few days, affecting demand.

Against the domestic price of ₹631 per kg for ungarbled. pepper, the consuming markets in North India are reported to have received imported commodities at their doorstep at ₹600-625. This, according to traders, has drastically reduced the demand for domestically produced pepper from Kerala, Karnataka and Tamil Nadu.

Kishore Shamji, president of Indian Pepper and Spices Traders Association (IPSTA), said pepper imports are on the higher side and stood at around 3,800 tonnes in August alone. The farming community alleged that Vietnam pepper is clandestinely entering the domestic market at $3,000-3,500 compared with $8,025 for Indian pepper.

Plea to raise output

According to Shamji, domestic pepper demand is on the rise on account of increased procurement by masala manufacturers ahead of the festival season.

Meanwhile, the Indian Pepper & Spices Traders Growers Planters Consortium – Kerala chapter has submitted a memorandum to a visiting Parliamentary Standing Committee, seeking measures to increase domestic pepper production. Indian pepper production stood at 65,000 tonnes against consumption of 85,000 tonnes, leading to dependence on imports.

The consortium wanted the committee to impress upon the Agriculture Ministry the need to support pepper farming at the grassroots to increase domestic production. Pepper production in 2024 is likely to be around 50,000 tonnes due to shortage of rains and this is expected to spur more imports. Speculative buying in the recent period has pushed pepper prices to newer heights but not brought any cheer to the farming community due to crop shortage.

September 19, 2023 at 01:20 PM.

BY V SAJEEV KUMAR

Brazil Pepper Pricing Overview Week 37

 

Plantation in São Mateus, Espirito Santo

Brazil remains stable and firm; expected to slowly
move at upward trend. Still seeing difficulties in 
securing raw material from farmers especially for 
sundried materials. 

Brazil Pepper Crop Situation
Another El Nino induced drought affecting mostly 
Para region with reports of dying plants and crop 
failures reversing the earlier projected good yield. 
Sundried materials are expected to be more limited 
with prices that could further move at an upward 
trend. 

Brazil Pepper August Export 
Brazil managed to export 5,113 tons of pepper for the 
month of August, generating about 50,408 tons for 
the first eight (8) months of the year. The volume is 
lower by a 2% margin only from last year’s export 
volume for same period. 

For the first eight (8) months of this year, the highest 
importer of Brazil Pepper is still Vietnam, able to 
import 9,437 tons, followed by Senegal with 4,820
tons, UAE at 4,789 tons, Morocco at 4,375 tons, India 
at 3,830 tons and Pakistan at 3,484 tons.

RGT Pepper Market Report – Week 37 /2023 
Royal Golden Trading 2023. All Rights Reserved.

Vietnam Pepper market update 4th Sept 2023 – Week 35.

Over the past week, black pepper prices have slightly increased by about  1,5% from 73,000 - 74,000.

The largest market, China, has resumed purchasing along with demand from Europe/USA for Q4 deliveries.

The average export price of Vietnamese pepper in August increased for the third consecutive month and reached the highest level in the past 10 months reaching U$ 3,748 an increase of 5% compared to the month of July.

According to the latest data from the *General Statistics Office*, Vietnam-s pepper exports in August reached 16,009 tons, an increase of 4,9% compared to July, but a decrease of 13,4% compared to the same period last year.

Export turnover in August reached 60.01 million U$D, a 5.4% increase compared to July, but a 20.2% decrease compared to the same period last year.

In the first 8 month of 2023, Vietnam´s pepper exports reached 183,919 tons.,a 14.5% increase compared to the same period in 2022

Price indication for the week 35

Upturn in Indonesian cloves price reflects global firmness

 

INTERNATIONAL cloves prices have held mostly firm in recent weeks as farmers at origin remain reluctant to lower their pricing ambitions and exporters appear confident of maintaining demand at high levels.

Indonesian cloves prices had moved particularly high, being above $10,000 a tonne cif.

“Our agent in Surabaya says that now that the crop is almost done, stocks are in the hand of farmers and they are not ready to give cloves at low prices especially knowing that kretek manufacturers are on the market looking forward to receiving what they have ordered already,” he said.

Mr Nee added that contrary to buyers’ hopes for lower prices, Indonesian farmers were speculating and pushing traders to pay a higher price on a daily basis. “They all know that the crop is sold to industries already and also that the next crop could be much lower than this one due to very dry weather in Indonesia when cloves (stems) should be starting to come on trees,” he remarked.

Hence, Mr Nee said he was not overly confident of the possibility for a price decrease.

Gregoire Courme, head of the spice trade department at Herbs International Service, commented: “The prices are still high, because the Indonesian market is firmer after the Ramadan. The current prices are between $10,500 to $11,000 a tonne fob.”

Mr Courme added that some local traders had sold short at levels of around $8,500 a tonne to cigarette firms before Ramadan, anticipating a fall during the festival. “Unfortunately the farmers did not deliver the goods and the cigarette manufacturers put the pressure on the sellers to get their contracts. So the local market is high now and the traders are running the market to find cloves. Moreover, the latest figures show that the crop is from 60,000 to 70,000 tonnes and not above 80,000 tonnes as initially predicted,” he said.

Mr Nee explained that in Comoros a lot of buyers had been visiting from Pakistan, the Middle East and China. These individuals would purchase “one or two boxes” of cloves and then leave the country, leaving scope for others to visit and take similar coverage.

Currently there were at least 16 buyers in Mutsamudu compared with only four recently. “Over this, the crop is much shorter than expected, maybe only 2,000 tonnes,” Mr Nee said.

As a result, Comoros cloves prices looked unlikely to decrease and the domestic market was holding firm.

Mr Nee said Comoros was offering at $9,400 a tonne cif Singapore, $9,950 a tonne cif US and €7,750 ($9,748) a tonne cif main European ports.

Mr Courme said that he could not find any sellers of Comoros cloves offering competitive prices.

He added that in Madagascar old crop prices had decreased a little bit since the end of July and were now around $9,700 a tonne c&f Europe.

Mr Nee viewed Madagascar old crop offers as still being “rather high” and he was advising extra care in making sure purchases were of a suitable quality.

The country has been pegged to have a favourable 2012 crop of between 8,000 and 9,000 tonnes. Harvesting was expected to start in mid-October for shipment in November.

Mr Nee said that as yet there was no idea of what the opening prices would be, but based on current offers it was doubtful there would be a large cut in Madagascar cloves prices ahead, he claimed.

Contacts in Brazil had indicated they were expecting new crop prices in the South American country to open around $9 and $10 a kg fob.

https://www.spicefactors.com/upturn-in-indonesian-cloves-price-reflects-global-firmness/

The various changes of Brazilian Black Pepper Trade

For the second year in a row Vietnam became the biggest importer of brazilian black pepper, overcoming traditional destinations like USA and also Germany.

USA has been the leading importer of brazilian black pepper since the beginning of the century.

Big changes happened after COVID-19 pandemia and actually during the last 10 years, starting with the production area in Brazil that developed a new very active production zone in the central-east (south of Bahia state and Espirito Santo state).Brazilian exports that were around 30k - 40 k tons per year from 2000 to 2015, rised to 91,000 ton in 2021.

Prices this week range between 3350 -3500 FOB.

The chart below show Brazilian Exports per destination from 2018 to 2023 elaborated by Coreimex. 

Prices this week range between 3350 -3500 FOB

If interested ask for a firm offer  peppertrade@olcom.com.br

Vietnam pepper market update 28th August 2023 – Week 34

  

August 28, 2023
Likely that Vietnam's pepper exports in the first 8 months of the year will reach around 183-185,000 tons. If the forecasted annual pepper production for 2023 is around 190-200,000 tons, it is certain that the inventory from previous years will be used for exports until the next harvest in 2024, which is still 5-6 months away.

It is predicted that this situation will lead to a less pepper raw material trading in the market in the fourth quarter, as the inventory from previous years is still held by farmers, traders, and export companies with a strong financial foundation and relatively high prices.

 

Please see the REPORT FILE & FULL QUOTATION LIST by click to download.

 

https://drive.google.com/file/d/1Fw1NvO3DkoV2i_JwHFhPaXJOi9iEkLDX/view?usp=sharing