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

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.

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.

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

Black Pepper - Brazil Pricing Overview

Week 33/2023

Brazil Pepper started at lows of BRL 11/kg for raw about $2550-2750 FOB range beginning this year, heading firm towards Q2 until it reached its expected weak spot beginning Q3 - the harvesting season.
All attention is with Brazil with demand activities mostly from Asian countries.
However, price softening did not last longer as price moves further up at level BRL 14-14,50/kg – an uptrend by about 18% from beginning year, 10% higher from last year same period recorded.

Contrary to pricing movement from last year, Brazil today appears to be siding strongly to an upward trend with reports of difficulties in procuring raw material from farmers not lower than BRL 14,50/kg having more interest to keep their pepper stocks rather than to sell immediately despite earlier reports of a good crop volume this year.

Brazil Pepper April Export Brazil was able to export about 6,158 tons of pepper this July, generating about 45,294 tons for the first seven (7) months of the year which is almost similar volume from last year same period recorded, but 6% higher if compared to same month from last year.

For the first seven (7) months of this year, the highest importer of Brazil Pepper remains to be Vietnam, having an import volume of 8,411 tons, followed by Senegal with 4,793 tons, next is Morocco contributing 4,267 tons, UAE share of 4,171 tons, India with a volume of 3,344 tons, and Pakistan at 3,024 ton.

RGT Pepper Market Report – Week 33 /2023 Royal Golden Trading 2023.
All Rights Reserved. Website: www.royalgoldentrading.com/ Email: Info@royalgoldentrading.co

Black pepper has turned hot in the recent weeks on speculative buying

 

August 8, 2023

The Hindu BusinessLine

Black pepper has turned hot in the recent weeks on speculative buying amidst concerns of delayed crop setting due to the erratic rainfall pattern in the key producing regions of Karnataka and Kerala.

Prices which hovered around the ₹480-500 a kg levels for a long time have increased to ₹ 603 for the ungarbled and ₹623 for the garbled varieties in the Kochi terminal market. However, prices are still short of the record ₹700 per kg witnessed during 2016.

The surge in prices is not seen benefiting growers because of the limited availability as most of them have sold their produce, while some are holding back in anticipation of further increase.

Kishore Shamji, President of India Pepper and Spice Trade Association (IPSTA), said Indian pepper is out-priced in the world market because of the higher prices of $7,700 per tonne, whereas Sri Lankan crop is available at $6,700 and Vietnam at $3,700.

He alleged that a cartel, which is behind hiking the prices of turmeric and cumin, is pushing up pepper prices as well.

Above floor price

The farming community fears that the higher prices in the domestic market might pave the way for more imports from Sri Lanka. Domestic prices are currently ruling above minimum import price of ₹500 per kg. There are also concerns that pepper from Brazil and Vietnam may enter the Indian market via Sri Lanka by paying the 8 per cent duty in view of the surging domestic demand which is estimated at 85,000 tonnes, Shamji said.

“Due to the scarce availability, the pepper imports into the country are likely to rise. If the prices continue to move up, lot of pepper will flow into India from countries such as Vietnam, but the growers will not benefit,” said KK Vishwanath, Convenor of the Consortium of Pepper Growers’ Organisation.

Subdued demand

According to Shamji, the demand for black pepper across overseas markets was subdued especially in China, the US and the UK because of the slowdown. At the same time, the Indian economy is booming with a burgeoning demand especially from masala manufacturers . 

Referring to production, Shamji said the climate change will have an impact on pepper cultivation across producing countries including India which are reporting a lower crop in the current season. For instance, Brazil has brought down production figures this season.

Mahesh Shashidhar, Chairman, Karnataka Planters’ Association, said the erratic rainfall pattern during the pre-monsoon and early part of the monsoon has impacted the flowering of pepper and the crop setting is seen delayed by few weeks.

https://www.thehindubusinessline.com/economy/agri-business/pepper-turns-hot-on-speculative-buying-concerns-of-delayed-crop-setting/article67172836.ece

KERALA - Market in stupor as pepper prices rise; Indian variety most expensive

 

Kochi: The price of pepper increased by Rs 30 per kilo within a day. In other words, the price per quintal went up by Rs 3000. 

This sudden and unexpected rise has created a shock in the market. Last week, the price had increased by Rs 20 per kilo

The price of ungarbled pepper is Rs 550 per kilo on Monday while garbled pepper stands at Rs 570 per kilo.  

Traders in Kerala point out the intervention of North Indian lobby as the reason for this price hike. 

They say that this is the same trading lobby that intervened to increase the price of commodities like cumin and turmeric.

Unpredictable weather changes can detrimentally affect production. 

There were campaigns that claimed pepper production would drastically reduce next year. 

This is what prompted masala manufacturing companies to procure and horde large quantities of pepper.

Some prominent companies also invited tenders to meet the chilly requirement for the next few months. 

The lobby has anticipated a demand for pepper in the near future and this intervention led to a rise in prices, traders say.

Kerala farmers continue to maintain a distance from the market. 

Those who have pepper stock in hand are not bringing the goods into the market hoping the prices may increase even more. 

With festival season coming, they anticipate a further rise in price.

Presently, Indian pepper is the most expensive in the International market. 

As per latest records, the price of Indian pepper is at 7,300 dollars per ton. Meanwhile, the price of Brazilian pepper is only 3,500 dollars per ton.

Similarly, the Vietnamese and Indonesian peppers are priced at 3,600 and 2,800 dollars per ton respectively. 

Exports from India have been on the decline for some time now but imports from Brazil and Vietnam are subject to heavy tariffs. However, even after considering this tariff, pepper from other countries have a lower price in the market than Indian pepper. 

The trade community indicates that if prices continue to rise, it will pave the way for imports.

V.P Sreelan 25 July 2023, 12:10 PM IST.

Read more at: https://english.mathrubhumi.com/news/money/market-in-stupor-as-pepper-prices-rise-indian-pepper-the-most-expensive-in-international-market-1.8760376

Cambodian Pepper trade hit by global downturn

Van Socheata  20 July 2023 

In the first half of 2023, Cambodian pepper exports, encompassing all varieties, hit about 4,300 tonnes. This reflects a drop of over 31 per cent compared to the same period last year, according to the Ministry of Agriculture, Forestry and Fisheries.

Ministry spokeswoman Im Rachna attributes the decline to the global economic downturn which has led to a drop in orders for all goods, pepper included.

Market uncertainty, climate change impacting crop yields and quality, and unauthorised exports through Vietnamese and Thai corridors are other contributing factors, she added.

Mak Ny, president of the Cambodian Pepper and Spices Federation (CPSF), noted on July 18 that the decline is linked to the falling market price of pepper despite a normal level of pepper production. This has resulted in some farmers suspending sales and drying the pepper, awaiting a rise in price before selling.

“The challenge isn’t new. The price of pepper dropped post-harvest. As a result, some farmers dried it, anticipating a price increase,” he said.

He added that weather-related challenges have led some farmers to abandon their crops, which could trigger a decline in pepper production this year and the next.

New markets are crucial for Cambodian pepper as it would lure more investors to grow and export pepper to countries beyond Vietnam, he emphasised.

“In ASEAN, Vietnam is a major buyer of Cambodian pepper. However, despite various regional and bilateral free trade agreements, tariff barriers and phytosanitary issues persist,” added Mak Ny.

Nguon Lay, president of the Kampot Pepper Promotion Association, observed that although there’s no official data on pepper exports, he assesses that Kampot pepper exports haven’t fluctuated in the first half, mirroring last year’s trends.

Despite the global crisis, demand for Kampot pepper remains steady, particularly from European buyers.

“Kampot pepper has not encountered significant issues. We have contracts with purchasing companies and export approximately 70 to 80 tonnes annually. The weather did not diminish the quality of the pepper as our farmers are prepared, particularly in managing water supplies in response to climate change,” he said.

However, the high maintenance costs associated with growing Kampot pepper have forced some farmers out of business, reducing the association’s membership from 460 to just over 350 households.

Cambodia exports pepper to a wide range of countries, and pepper is grown in 18 provinces across the nation, including Mondulkiri, Ratanakkiri, Tbong Khmum and Kampot.

https://www.phnompenhpost.com/national/pepper-trade-hit-global-downturn-h1-ministry

Vietnam Pepper mkt update 1st May 2023 – Week 17

 

 

Last week, pepper price continued to increase impressively with an increase of 4.5%. Thus, pepper price in the past 2 weeks has increased by 7.5% from 66,500vnd - 71,500vnd.

The main reason is that Vietnam continues to export large quantities in April (forecast 30,000 tons), bringing the total export volume in 4 months to approximately 107,000 tons. Up to 25-30,000 tons over the same period in 2022.

With crop output forecasted at just over 200,000 tons, while exporting up to 107,000 tons within 4 months, We can see selling pressure from farmers, agents will not be much when there are 8-9 months until the new 2024 harvest.
Despite the relatively gloomy demand from different markets such as the US/ EU/ AFRICA/ ASIA, farmers, dealers and many analysts forecast and expect that pepper prices will have impressive growth momentum in the coming years.

Although the price of pepper has increased in recent years, profits are still not really atractive to farmers  when costs have seriously increased during the past time such as fertilizer costs, harvesting workers, etc.

Therefore, the harvested area of pepper has continuously decreased in the past 3 years and is expected to continue  to decrease when farmers rarely replant pepper but actively develop other fruit trees such as durian, avocado, jackfruit... etc.

Wheather
After the harvest, the weather in Vietnam becomes hot, especially in the key pepper regions of the country such as Daklak, Daknong, Dong Nai, Ba Ria Vung Tau... El nino phenomenon is forecasted to make pepper gardens affected.

A brief sight of the alternate market suppliers

INDIA
Pepper prices in India unchanged in the past week.

SRI LANKA
Pepper prices remained stable.

INDONESIA
The price of Lampung black pepper in Indonesia is almost unchanged. New crop starting to harvest.

BRAZIL
Pepper prices last week tended to increase. Very few raw material are offered for sale in the market.

MALAYSIA
Malaysia's Kuching ASTA black pepper price remained stable.

===================================

PINHEAD
PINHEAD< 1MM SUPER CLEANED  $1.003 
PINHEAD 1.5MM • 2MM CLEANED $1. 227 
PINHEAD 2MM - 2.5MM CLEANED $1.446 
PINHEAD SUPERIOR QUALITY $1.666 

WHOLE PEPPER
VBP 500 G/L FAQ $3.236 
VBP 550 G/L FAQ $3.485 
VBP 500 G/L Double Spiral Cleaned $3.532 
VBP 550 Gil Double Spiral Cleaned $3.595 
VBP 570 G/L Double ASTA $3.658 
White PEPPER 630 G/LASTA $5.006 

STEAM STERlllZED PEPPER
PINHEAD
Steam Sterilized Pinhead < 1MM $1.453 
Steam Sterilized Pinhead 1.5MM - 2MM $1.677 
Steam Sterilized Pinhead Super Quality $2.116 

LIGHT BERRIES PEPPER
Steam Sterilized Black Pepper 250 G/L   $3.429 
Steam Sterilized Black Pepper 350 G/L   $3.523 

STEAM STERILIZED PEPPER
Steam Sterilized Pepper S00G/L   $3.753 
Steam Sterilized Pepper 550G/L    $3.881 
Steam Sterilized Pepper 570G/L   $3.945 
Steam Sterilized White Pepper 630G/L  $5.371 

STEAM STERILIZED PEPPER - EU COMPLIANCE
Steam Sterilized Pepper S00G/L   $3.933 
Steam Sterilized Pepper 550G/L   $4.061 
Steam Sterilized Pepper 570G/L   $4.125 
Steam Sterilized White Pepper 630G/L $5.551 

#2023 pepper crop,#black pepper #pepper price,#April pepper price,#vietnam pepper price

====================================

JUST A REMINDER
PINK PEPPER HARVEST START END OF MAY
BEST QUALITY PRODUCT ARE ALWAYS AT THE BEGINNING.
CALL US IN ORDER TO ASSURE YOURS !

Vietnam Pepper market update 24th April 2023 – Week 16.

April 24, 2023

- Last week, pepper price increased from 66,500 - 68,500 VND, equivalent to an increase of 3%.

- Demand has returned from the main market, China, besides the US and Europe.

Pepper prices lost week had an impressive increase when China continued to increase purchases  , in addition  to demand  from the US and EU markets.
Besides, exporters also actively buy   raw   materials  to  replenish inventories . Therefore, last week, the amount of raw materials offered on the market was quite small as farmers and agents expect pepper prices to increase in the near future.

According to the preliminary data report  of  the Customs, exports in the  first  17  days  of  April  2023 reached 14,464 tons of pepper, with a turnover of 43.91 million  USD,  bringing  the  export  of  the  first  3.5  months of the year to reached 89,795 tons, up 39.27% in volume and 8.59% in value over the same period last year. The average export price of pepper in the period reached  3,048 USD/ton,  up  2.35%  compared  to  the  average export price of Ma rch  2023.  Thus,  it  is  likeIy  that  April will export 25-30,000 tons, bringing the  total  export volume in 4 months to 102-107,000 tons. (In the first 4 months of 2022, only 79,410 tons were exported).

According to the update from the International Pepper Association (IPC), world pepper prices are as follows:

INDIA
Pepper prices in India have fallen slightly in the past week.

SRI LANKA
Pepper prices remained stable.

INDONESIA
• The price of Lampung black pepper in Indonesia is almost unchanged.
• Price of Muntok white pepper at 6,002 USD/ton.

BRAZIL
Pepper prices last week tended to increase. Very few raw material ore offered for sale in the market as farmers and dealers focus their resources on the coffee crop.

MALAYSIA
Malaysia's Kuching ASTA black pepper price remained stable at $4,900/ton; while white pepper is still at $7,300/ton.

#2023 pepper crop,#black pepper #pepper price,#April pepper price,#vietnam pepper price

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INDICATIVE FOB PRICES FOR THE WEEK APRIL 24,  2023

PINHEAD

PINHEAD 1MM  SUPERCLEANED $1.003

PINHEAD1.5MM -2MM  CLEANED $1.227

PINHEAD 2MM -2.5MM CLEANED $1.446

PINHEAD  SUPERIOR   QUALITY $1.666

WHOLE

VBP 500 G/L FAQ $3.083

VBP 550 G/L FAQ $3.322

VBP 500 G/L Double Spiral Cleaned $3.367

VBP 550 G/L Double Spiral Cleaned $3.427

VBP 570 G/L Double ASTA $3.487

STEAM STERILIZED PEPPER

Steam Sterilized Pepper 500G/L $3.583

Steam Sterilized Pepper 550G/L $3.705

Steam Sterilized Pepper 570G/L $3.766

STEAM STERILIZED PEPPER - EU COMPLIANCE

Steam Sterilized Pepper 500G/L $ 3.763 

Steam Sterilized Pepper 550G/L $ 3. 885

Steam Sterilized Pepper 570G/L $ 3,946

Steam Sterilized Pepper SMM $ 4. 024

Steam Sterilized White Pepper 630G/L $5.505

===============================

JUST A REMINDER
PINK PEPPER HARVEST START END OF MAY
BEST QUALITY PRODUCT ARE ALWAYS AT THE BEGINNING.
CALL US IN ORDER TO ASSURE YOURS !

Vietnam Pepper market Monthly Report March 2023

APRIL 17 2023

MARCH 2023 PEPPER EXPORTS

According to preliminary statistics of VPA, in March 2023, Vietnam exported 35,913 tons of pepper, 32,912 tons of black pepper, 3,001 tons of white pepper. Total export turnover reached 107.2 million USD, black pepper reached 93.6 million USD, white pepper reached 13.6 million USD, compared to the previous month, the export volume increased by 27.5%. The average export price of black pepper in March was U$ 3,454;Ton white pepper was U$ 4,841/ton, compared to previous month the price of black pepper increasedby 5,5% and the white pepper decrease by 15,9&

Exports to China in March reached 15,710 tons, this is the highest export volume ever in a month, breaking the highest export record of April 2020 at 11,953 tons, compared to February export volume to China increased by 85.2%. March also recorded an increase in exports to traditional markets such as the United States, Germany, the Netherlands, India, Egypt, France, Russia, Canada, and Spain,  Saudi Arabia and Turkey increased. The United Kingdom decreased compared to February 2023.

EXPORTING PEPPER FROM JAN TO MAR 2023

Progressively from January 1 to the end of March 2023, Vietnam exported 76,727 tons, of which black pepper reached 70,222 tons, white pepper reached 6,505 tons. 

Total export turnover reached 235.9 million USO, black pepper reached 205.4 million USO, white pepper reached 30.5 million USO. 

Compared to the same period last year, the export volume increased by 40.5% or 22,112 tons, however, the export turnover decreased by 7.3% or 18.5 million USO.

Exports in the first 3 months to China reached 25,919 tons compared to 2,138 tons in the same period, a sudden increase in exports can be understood as China buying to make up for the shortage of goods after 3 years of closure because of Covid-19. In contrast to the Chinese market, exports to the United States, Germany, the Netherlands, the United Kingdom, and India decreased. 

The reason may be due to the economic crisis, so the markets limit purchases. Some other markets recorded an increase in exports such as Iran up 461%; Turkey increased by 331.3%; Egypt by 218.4%; Senegal increased by 148.8%... 

The leading import markets of white pepper: Germany, the United States, China, the Netherlands

===============================

#2023 pepper crop,#black pepper #pepper price,#April pepper price,#vietnam pepper price

=========================

JUST A REMINDER
PINK PEPPER HARVEST START END OF MAY
BEST QUALITY PRODUCT ARE ALWAYS AT THE BEGINNING.
CALL US IN ORDER TO ASSURE YOURS !

Vietnam Pepper market update April 3rd 2023 – Week 13 - Prices

We would like to send you a quick highlight spices market update 3rd April 2023 – Week 13.

Last week, the pepper market was quite stable and the trading volume on the market was not much. Now that the crop has been harvested, farmers/dealers continue to stock up and do not offer to sell when the pepper price is adjusted down. 

Importers have increased their purchases with faraway orders in the third and fourth quarters of 2023 but manufacturers and exporters are very cautious and offer little to sell long-distance orders as many experts forecast an upward trend in next time. 

According to preliminary statistics, Vietnam's pepper exports in March are forecast to reach over 36,000 tons In which China imported  over 14,000  tons 

This  broughtn Vietnam's total pepper export volume in 3 months to over 76,000 tons, up 40% compared to the first 3 months of 2022 (54,615 tons) and increased 23% compared to the first 3 months of 2021 (61,584 tons)

 According to the update from the International Pepper Association (IPC) on March 30 (local time), the world pepper price compared to March 29 is as follows:

INDIA

The price of pepper is almost unchanged

INDONESIA

Lampung black pepper (Indonesia): at 3,643 US/ton, up 0.22%.

Muntok white pepper: at $6,141/ton, up 0.21%.

BRAZIL

Pepper prices increased slightly due to strong demand from different markets. The Brazilian real currency is getting stronger against US which makes pepper more expensive when converted to US

MALAYSIA

Kuching black pepper (Malaysia) ASTA: at $4,900/ton, unchanged 

Malaysian white pepper ASTA: at $7,300/ton, unchanged

PEPPER PRICE INDICATION FOB HCMC 

REGULAR PEPPER

PINHEAD 1.5MM • 2MM CLEANED $1. 227

PINHEAD 2MM - 2.5MM CLEANED $1.446

PINHEAD SUPERIOR QUALITY $1.666

VBP 550 G/L FAQ $3.246

VBP 500 G/L Double Spiral Cleaned $3.319

VBP 550 Gil Double Spiral Cleaned $3.378

VBP 570 G/L Double ASTA $3.438

VBP 5MM Jumbo Size $3.540

White PEPPER 630 G/L DW $4.874

White PEPPER 630 G/LASTA $4.918

STEAM STERILIZED PINHEAD PEPPER

Steam Sterilized Pinhead < 1MM $1.453

Steam Sterilized Pinhead Super Quality $2.116

STEAM STERILIZED LIGHT BERRIES PEPPER

Steam Sterilized Black Pepper 250 G/L $3.218

Steam Sterilized Black Pepper 300 G/L $3.265

Steam Sterilized Black Pepper 350 G/L $3.312

STEAM STERILIZED PEPPER - EU COMPLIANCE

Steam Sterilized Pepper 500G/L $3.715

Steam Sterilized Pepper 550G/L $3.835

Steam Sterilized Pepper 570G/L $3.895

Steam Sterilized Pepper SMM $3.972

 Steam Sterilized White Pepper 630G/L $5.459

Vietnam Pepper market update 27th March 2023 – Week 12 and Prices

 We would like to send you a quick highlight spices market update 27th March 2023 – Week 12.

Last week, pepper price decreased slightly by 0.8% when demand was quite slow from different markets such as China / EU / USA / AFRICA…

The market last week pepper prices were less volatile when demand was quiet in the largest market, China.

Other markets such as the US / EU / ASIA ... have been interested in more orders for delivery in full year shipment 2023 than before. However, export manufacturers in Vietnam are very cautious and almost only offer spot orders.

|

 Indication price PEPPER,  based on NET FOB HCM as follows

PINHEAD < 1MM SUPER CLEANED $1.146

PINHEAD 1.5MM - 2MM CLEANED $1.446 

PINHEAD 2MM - 2.5MM CLEANED $1.754 

PINHEAD SUPERIOR QUALITY $2.106 

BPEPPER 500 G/L FAQ $3.039

BPEPPER 550 G/L FAQ $3.246 

BPEPPER 500 G/L Double Spiral Cleaned $3.319 

BPEPPER 550 G/L Double Spiral Cleaned $3.378 

BPEPPER 570 G/L Double ASTA $3.438 

BPEPPER 5MM Jumbo Size $3.540 

White PEPPER 630 G/L DW $4.918 

White PEPPER 630 G/LASTA $4.962 

Pepper price in 2023 - UP or DOWN ?

The question of the moment is the Price
All the people involved in spice trading  or even need to know what is this year trend for Pepper.
We just got a report from one of biggest world spice trade players whose point of view may bring some answers.

Market will remain at pricing level for raw material between 62,000-67,000 VND/kg from Q1-Q2 and will slowly move upward into 75,000-80,000 VND/kg by Q3-Q4.

We suspect prices we are seeing this year will be the lowest. Next four (4) years cycle might lean into an upward trend from the current levels.

Pepper price hit a 10% increase in pricing since the beginning of this year. 
Lowest level was seen at 59,000 VND during January month and had crossed over the highs of 69-70,000 VND marked during February month.

Overall, we see indications suggesting bulls having a strong advantage over bears

------------------------

The Bearish Indicators

• Higher interest rates means higher storage cost which tampers buying power.

• Brazil crop news will probably be a decisive moment. If crop is big, it will supply Vietnam and rest of the world.

• Economic situation worldwide is not satisfactory which may reduce imports.

• Various countries encountering devaluation of their currencies and shortage of dollars causing a eduction in imports. 

--------------------------

The Bullish Indicators

• Vietnam had already finished harvesting 80% of its yield and still no hint of selling pressure from farmers’ side.

• The new crop arrival in the warehouses were very limited during the peak arrival season.

• Chinese is actively buying and will remain active until June 2023.

• The first two (2) months of the year, Vietnam have already exported about 42,000 tons. March export is expected to reach about 30,000 tons. By first half of 2023, big volume will be exported, and emaining quantity will be in strong hands.

• Exporters are not keen to offer forward positions.

• Exporters feel that the levels we are seeing now will be the lowest; therefore, not to go short will be an advantage.

• Farmers are holding their pepper goods due to the advantage of coffee and other fruits high prices income.

• Both stock market and real estate property are not doing well, causing most buyers to invest in commodities.

• Buyers’ coverage beyond June is limited; demand recovery is to be expected during Q3 and Q4.

• Pepper plantation areas is decreasing annually while proper caring for pepper vines is neglected.

• Farming input cost significantly increased which translates to higher production cost.

• Climate change is also worsening the vulnerability of farmers.

• Considering the small pricing differences between Brazil and of Vietnam, companies based in Hochiminh will probably focus on Vietnamese Pepper especially now that Sundried material is not easily available until August month.

• Early reports indicating Indonesian next crop will be small.

----------------------------

Pepper Talk: Bullish Bearish Analysis by Royal Golden © Royal Golden 2023. All Rights Reserved.

Vietnam Pepper market update 20th March 2023 – Week 11

  

Last week, the global financial market received bad news such as the bankruptcy of 3 major banks in the world & bad news from Credit Suisse. However, the pepper market was almost unaffected by this information and continued to increase in price last week with an increase of 2.2%.

Demand continues to increase from the Chinese market and improvement from major markets from the US and EU have made the market more active.
Much information shows that it is likely that in March, Vietnam will export at least 30,000 tons, bringing the total export volume to at least 70,000 tons within the first 3 months. (The above export data does not include statistical data through unofficial trade, corresponding to 10 - 15,000 tons. If so, the export volume will be increased to approximately 85,000 tons). This is an impressive number when the 2023 crop is forecasted to only reach approximately 180,000-200,000 tons.