INDONESIA CLOVES MKT INFORMATION

June25/2020

COVID cases are increasing by the day and there is no sign of plateau yet.
Currently there are about 48000 official cases with around 2500 deaths. Mind you, these are “official” statistics.
Meanwhile, due to the Dollar weakening and Fiscal Stimulus, IDR is getting stronger.
It went up all the way to 13900 and currently hovering around 14200 levels against the Dollar. Basically, a correction of about 7% in the short term and 14% in the Medium Term!

Island wise lockdown is still in force, although the new normal is underway in cities like Jakarta.
As a result of this, container, cargo as well as labor availability remains as a challenge.

Cloves:
Arrivals haven’t started yet.
Contrary to the belief of many that Indonesia will have another big crop like last year, it seems that it is not as big as was initially expected.
Making matters worse, there is an acute crisis of Labor.
Thumb rule is, at any growing area of Clove, there are more tree than people to pick the cloves. As a result of this, Clove owners tend to outsource people from adjoining islands during the picking season.
Now that most of the islands are following their self-imposed exile or 14 days of Quarantine, there is a strong possibility that net availability of cloves will remain low even at the peak season.
We also heard that one of the big boys has either started to purchase or will start soon. But the
exact time and quantity is difficult to predict.

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BRIEF PICTURE OF THE SITUATION OF BLACK PEPPER IN BRAZIL

MAY 15, 2020

Pepper in Brazil is scarce now as the harvest in Espirito Santo finished and the new crop in Belem will start in July/August.
Some stock is been kept by the growers but due to scarcity asked prices are hight.

In the last weeks the CORONA issue impacted heavily on pepper trade in Brazil causing delays in processing, transportation and port operations such as inspections and loading/unloading due to strong reduction of the workforce.

These are problems common to the whole world now but, in Brazil has particular issues of the political strugle against the President Bolsonaro which cause a big indefinition about the economy,
As a result of this political unrest, Dollar rates are absolutelly volatile with daily changes of upt to 2% - 3%.
Growers and stock holders try to get maximum price following and oftenly even surpassing de Dollar appreciation.
Therefore business is very difficult to settle.

Some esxporters that sold future shipments are short and struggling to honour their commitments.
In the words of one exporter "he offers price within 10 minutes validity" because growers change prices by hour.
If not confirmed at once the price is not valid anymore. Earlier this week business was done at U$D 1,900 FOB but today it would be impossible to make it at U$D 2,000.

Pepper at farmgate rose 28% from last week to yesterday and more 10% today.

Bottom line is: If you get a suitable offer book it immediatelly ! or consider wait for some weeks to see if market stabilize.
General trend is upwards, and we might see prices way over U$D 2,000 in the next months.

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IPC PEPPER MARKET REPORT No. 18/20, 27 April - 1 May 2020

LOCAL MARKETS

Market this week showed a rather positive outlook as only India origin was reported with a decrease. In local market, Malabar black pepper was reported with 1% deficit when compared to the previous week averaging at USD 4,121 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively as opposed to the previous week, averaging at USD 1,622 per Mt for black pepper and USD 2,823 per Mt for white pepper. The slight increase of Indonesia pepper could be contributed to the strengthening of Indonesian Rupiah against US Dollar (IDR 15,413 @ USD 1). Malaysia's black and white peppers were also reported with an increase of 1% respectively when compared to the previous week with an average of USD 1,701 per Mt for black pepper and USD 3,052 per Mt for white pepper. Furthermore, Viet Nam black pepper was reported with an increase of 1% as compared to the previous week at an average of USD 1,649 per Mt whilst Viet Nam white pepper was reported stable and unchanged. Sri Lanka black pepper was reported with an increase of 3% as compared to the previous week and was traded at an average of USD 2,680 per Mt. China white pepper was reported stable and unchanged.

INTERNATIONAL MARKET

International market also showed a rather positive outlook as only India origin was reported with a decrease. India black pepper was reported with the same 1% deficit when compared to the previous week at an average of USD 4,385 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively as compared to the previous week averaging at USD 2,005 per Mt for black pepper and USD 3,358 per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were also reported stable and unchanged. China white pepper was reported steady and also unchanged.
Trade activity in US market this week was reported with moving slow due to the pandemic of corona virus with a wishful prospect the next month business will recommence though grinder/trading house stock limited. 

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IPC Pepper Market Report No. 17/20, 20 - 24 April 2020

LOCAL MARKETS
Market this week showed a mixed response with Sri Lanka origin was reported with the highest decrease. In local market, Malabar black pepper was reported stable averaging at USD 4,155 per Mt. Indonesia black and white pepper were reported with an increase of 1% and 2% respectively as opposed to the previous week, averaging at USD 1,604 per Mt for black pepper and USD 2,791 per Mt for white pepper. Malaysia's black and white peppers were reported with 1% deficit respectively when compared to the previous week with an average of USD 1,690 per Mt for black pepper and USD 3,032 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with an increase of 2% respectively when compared to the previous week and was traded at an average of USD 1,628 per Mt for black pepper and USD 2,431 per Mt for white pepper. Sri Lanka black pepper was reported with 5% deficit as compared to the previous week and was traded at an average of USD 2,592 per Mt. China white pepper was reported stable and was traded at an average of USD 4,275 per Mt locally.

INTERNATIONAL MARKET
International market showed a rather positive outlook as Indonesia and Viet Nam origin were reported with an increase. India black pepper was reported stable at an average of USD 4,416 per Mt. Indonesia black and white pepper were reported with an increase of 1% and 2% respectively as compared to the previous week averaging at USD 1,983 per Mt for black pepper and USD 3,320per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 2%, 2% and 1% respectively as compared to the previous week averaging at USD 2,130 per Mt, USD 2,160 per Mt and USD 3,060 per Mt respectively. China white pepper was reported steady and was traded at an average of USD 4,475 per Mt internationally.

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Corona takes the sheen out of cardamom growers

Thiruvananthapuram, April 22 (IANS)

Kerala which leads the country with a giant share of 89 per cent of the total production of cardamom, is finding its growers in a difficult situation. The cardamom growers are reeling as COVID-19 has hit them very hard.
The growers sell their produce by participating in the auction, held at Bodinayakkanur in the Theni district of Tamil Nadu, which lies close to the Thekkady tourist location in the Idukki district in Kerala.
In Kerala, Idukki is the home of cardamom growers who own large and small holdings and the total area under cardamom cultivation is around 38,000 hectares.
Though there is an auction centre at Vandanmeddu in Idukki district, the auction centre in Bodinayakkanur is the single most popular centre, as far as the cardamom auction is concerned.
Speaking to IANS, Sunny Mathew, executive member of the Cardamom Growers Association said things are bleak and getting bad.
"Ours is a product which fetches the highest price when the colour of the cardamom is best and fresh. Any delay in getting the product out of our farms spells danger. Sadly it''s been a month now as the premier auction centre is closed. We have never ever had such a long delay and it comes at a time when the prices were looking bright," said Mathew, a grower and also an exporter.
Cardamom from Kerala farms is auctioned and it goes to north India and for exports.
The peak market for this high quality and popular spice, used for baking and cooking purpose across the globe, begins when the yield is taken from September and tapers in January.
"This time the production has come down from 28,000 tones, last year to around 18,000 tones. When production comes down, the price rises and in January this year a kilogram of cardamom touched Rs 3,000 and when the lockdown began it was around Rs 2,300," said Mathew.
With Bodinayakkanur now declared as a hotspot for Covid-19, things are going to be bad and it would prevent auctioneers and their agents to arrive there.
"We want the government to come to our support. The Spices Board should take our products and based on our cost of production, they should lift our stock. If it does not happen, then the production would be seriously affected this year, as we do not have funds to invest. Also liberal moratoriums with regards to interest waiver and repayment also should be there," said Mathew.
--IANS
sg/dpb

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IPC - #PEPPER MARKET REPORT No. 16/20, 13 - 17 April 2020

LOCAL MARKET
Market this week showed a positive response with Indonesia origin reported with the highest increase. In local market, Malabar black pepper was reported stable averaging at USD 4,159 per Mt. Following the strengthening of the Indonesian rupiah against US Dollar by 4% as compared to last week's average, Indonesia black and white pepper were reported with an increase of 8% and 4% respectively as opposed to the previous week averaging at USD 1,591 per Mt for black pepper and USD 2,737 per Mt for white pepper. Malaysia's black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black and white pepper were reported with an increase of 1% respectively when compared to the previous week and was traded at an average of USD 1,594 per Mt for black pepper and USD 2,381 per Mt for white pepper. As a result of the strengthening of Sri Lankan Rupee against US Dollar, Sri Lanka black pepper was reported with an increase of 3% as compared to the previous week and was traded at an average of USD 2,732 per Mt. China white pepper was reported with a slight increase of 1% and was traded at an average of USD 4,263 per Mt locally.

INTERNATIONAL MARKET

International market also showed a positive outlook as only India and Malaysia origin were reported stable. India black pepper was reported stable at an average of USD 4,421 per Mt. Indonesia black and white pepper were reported with an increase of 8% and 4% respectively as compared to the previous week averaging at USD 1,967 per Mt for black pepper and USD 3,258 per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 2%, 2% and 1% respectively as compared to the previous week averaging at USD 2,090 per Mt, USD 2,120 per Mt and USD 3,020 per Mt respectively. China white pepper was reported with an increase of 1% as opposed to the previous week and was traded at an average of USD 4,463 per Mt internationally.

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#CARDAMOM - Lockdown takes a toll on cardamom

Shipments to Gulf countries in limbo

V Sajeev Kumar  - Kochi April 16, 2020

 Growers saddled with unsold stocks as Ramadan export potential goes awry

The Covid-19 pandemic has cast a shadow over India’s cardamom export prospects, particularly to Gulf countries during the holy Ramadan month, which begins on April 21 and runs up to May 20.

Exporters say Indian cardamom -- especially the 7 to 8 mm capsules -- was dominating in the Gulf markets because of its quality and price competitiveness vis-a-vis the Guatemalan variety. With the Gulf markets in the grip of the pandemic, cardamom exports from India have come to a standstill.
However, a Kochi-based exporter said his company is pinning hopes on the revival of exports to Saudi Arabia, which was suspended following issues connected with pesticide residue levels. The kingdom is reported to have taken positive steps in modifying the MRL levels, as Indian cardamom is a major ingredient in qahwa, a traditional coffee drink of the region.
Missed chance

It may be recalled that the issues connected with pesticide residue limits imposed by Saudi had impacted the prospects of Indian cardamom. Exports of the spice in 2019-20 was around 500 tonnes valued at ?150 crore compared to 2,000 tonnes in the previous year.

M Dhanavanthan, an exporter based in Bodinayakanur in Tamil Nadu, told BusinessLine that exporters have missed a business opportunity in the Ramadan period and the situation has made it even more difficult to clear the stocks. Most of the stocks are lying with farmers and traders. Only if the stocks are cleared, planters can invest in new crop, for which the first picking season begins by the end of May or early June.

Though the export market is likely to open up by August-September, there could be more stringent measures in the post-Covid days, he added.

The auctioneers in Vandanmedu said the stoppage of auctions since mid-March has caused accumulation of stock, leading to cash crunch to growers. It is estimated that around 800 tonnes of cardamom valued at ?200 crore could not be disposed of due to the suspension of auctions.

Bodinayakanur in Theni district, which is the primary trade centre for cardamom, is also a hotspot for the coronavirus. This has hindered the movement of cargo and traders. With the auctions suspended, there is confusion over pricing among farmers.

https://www.thehindubusinessline.com/markets/commodities/

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IPC MARKET REPORT - No. 15/20, 6 - 10 April 2020

As the total death from COVID-19 outbreak nearly reached 100,000 people, many countries enforced more rigorous measures in trying to lessen the spread of the Virus. Indonesia reportedly implemented a large-scale social restriction in their capital city which would last for the next two weeks, as market this week showed a mixed response. In local market, Malabar black pepper was reported with 1% deficit when compared to the previous week averaging at USD 4,177 per Mt. The decrease of Malabar black pepper price could be contributed to the weakening of Indian Rupee against US Dollar. Indonesia black and white pepper were reported with a slight increase by 1% respectively as opposed to the previous week averaging at USD 1,467 per Mt for black pepper and USD 2,628 per Mt for white pepper. The increase of Indonesia black and white pepper price could be contributed to the slight strengthening of Indonesia Rupiah against US Dollar. Malaysia's black and white pepper were reported stable aver aging at USD 1,705 per Mt for black pepper and USD 3,059 per Mt for white pepper. Furthermore, Viet Nam black pepper was reported stable and unchanged whilst Viet Nam white pepper was reported with 1% deficit as compared to the previous week and was traded at an average of USD 2,347 per Mt. Following the significant weakening of Sri Lankan Rupee against US Dollar, Sri Lanka black pepper was traded with a 4% deficit as opposed to the previous week at an average of USD 2,660 per Mt. China white pepper was reported with an increase of 1% and was traded at an average of USD 4,239 per Mt locally.
In contrary, international market showed a rather positively outlook with only India origin recorded a deficit. India black pepper was reported with the same 1% deficit as compared to the previous week at an average of USD 4,440 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively as compared to the previous week averaging at USD 1,819 per Mt for black pepper and USD 3,129 per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, contrary to local price, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 4%, 3% and 2% respectively as compared to the previous week averaging at USD 2,050 per Mt, USD 2,080 per Mt and USD 2,980 per Mt respectively. China white pepper was reported with an increase of 1% as opposed to the previous week and was traded at an average of USD 4,439 per Mt internationally. 

VIETNAM - PEPPER MARKET UPDATE 13TH APRIL 2020 – WEEK 16

Global pepper market is forecast to be slow due to affected by COVID-19.
Disease movements are still complicated, especially in the US&Europe - the major pepper markets in the world, will cause less import demand. The global pepper market maybe continue  faces disrupted supply due to social isolation requirements and restrictions on clearance of cargo from many countries around the world.

Through a quick inspection again with Customs & Department of Agriculture and Rural Development, Vietnam has exported up to 42,330 tons of pepper in March (higher than the figures we forecast last week over 8.000 tons). The first quarter 2020 export reached 83,246 tons that increasing by 12.6% compare with the same period in 2019 (exported 72,726 tons). This is new records from Vietnam and very impressive for everybody too.

March also recorded a sharp increase in imports to more than 10,000 tons from Chinese, it’s biggest quantity was imported within 1 month from China until now. Details of export/import data each country, I will try to analyze and send you within end this week.

Pepper market opening today with less offer from domestic suppliers. Market very steady and China continue buying beside other countries like ASIA/USA/EU.

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VIETNAM -PEPPER MARKET UPDATE 6TH APRIL 2020 – WEEK 15

First half of March 2020, Vietnam has exported pepper reached 16,689 tons with a turnover 35.21 million USD. Pepper exported in the first 2.5 months reach 57,128 tons, up 5.75% in quantity but down 11.24% in value over the same period last year. The average export price reached 2,110 USD/ton, down 5.25% compared to the average export price of February 2020.

In March, export reached 34,000 tons, bringing the total export volume in the first 3 months of 2020 to approximately 75,000 tons (same period in 2019 was 72,726 ton). This is very impressive record of Vietnam's pepper exports although the export volume to China decreased by over 10,000 tons in the first 3 months because influence of Covid 19. Details of export/import data each country, we will update and send you in the coming week.

At present, Vietnam has basically finished harvested 2020 pepper crop. Farmers/domestic agents only offer a very small quantity to cover temporary costs and continue storage due to low prices. The price is attractive so many customer/exporters… considering to stockpile.

China has better control of Covid, so it has been actively buying large quantity from last week especially white pepper. In addition, the market continues to receive great demand from the USA/UAE for both prompt and further shipment that make market stable and uptrend. Vietnam's currency last week slightly stronger compared to USD but not stability.

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# CARDAMOM INDIA - Kerala With no auction, cardamom piles up

IDUKKI, April 03, 2020 23:23 IS

 

Sector faces uncertainty as crop prices are decided at auctions

The cardamom sector is facing a deadlock in the absence of auctions, with the main buyers in Mumbai abstaining from taking new orders for nearly a month. The produce is held up with farmers and small-scale traders, K.S. Mathew, director, Vandanmedu Green Gold Cardamom Producer Co. Ltd., told The Hindu on Friday.

There are 12 auctioneers at the Spices Park at Puttady under the Spices Board of India. As per the licensing agreement, the auctioneer has to pay the farmer the price of cardamom within 10 days of the auction. The traders and industrial units that purchase the produce have to pay the auctioneer the price within 21 days. The mechanism was going on unhindered with the daily auctions, he said.

Cardamom’s price is decided at the auctions, without which there is total uncertainty. The price would be known only when the auctions restart, Mr. Mathew said.

Last price

It is estimated that the traders have to pay the auctioneers more than ₹200 crore for the last two to four consignments in the auctions. When the auctions were stopped following the COVID-19 scare the price was at ₹3,500 per kg.

Marketing sources said prices could dip as the next crop, predicted to be a bumper one, is set to arrive in the market by June/July, and a major quantity produced in the last season has remained unsold. Moreover, the crop’s export prospects will depend on the stance of Saudi Arabia, the main buyer, sources said.

No buyers

The last harvesting season witnessed the highest ever prices quoted in the auctions, reaching up to ₹9,000 per kg.

The absence of trading has affected not only the plantations but also small-scale farmers. Lalichan, a farmer in Peerumade, said there were no buyers with small-scale hill produce merchants ceasing to buy cardamom. A trader had agreed to take the produce without making payment now. A meagre price was offered.
“How can one sell the produce without knowing the price and without being paid,” he added.

Giji K. Raman for
https://www.thehindu.com/news/national/kerala

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#PEPPER - IPC MARKET REPORT No. 14/20, 30 March - 3 April 2020

As Viet Nam reportedly implemented a total nation-wide lockdown, starting 1 April 2020, in response of trying to flatten the curve of Corona Virus spreading, market this week showed a mixed response as only Viet Nam was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 1% when compared to the previous week averaging at USD 4,219 per Mt. The increase of Malabar black pepper price could be contributed to the slight strengthening of Indian Rupee against US Dollar. Following the social distancing policy implemented in Indonesia some major markets in Lampung and Bangka, two major producing area of black and white pepper, are closed. Consequently, Indonesia black pepper was reported with a slight increase of 2% as opposed to the previous week averaging at USD 1,458 per Mt whilst Indonesia white pepper was reported stable at an average of USD 2,612 per Mt. Malaysia black and white pepper were reported with an increase of 1% respectively as comp ared to the previous week averaging at USD 1,703 per Mt for black pepper and USD 3,056 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with 2% deficit respectively when compared to the previous week and was traded at an average of USD 1,577 per Mt for black pepper and USD 2,381 per Mt for white pepper. Sri Lanka black pepper was traded with 1% deficit as opposed to the previous week at an average of USD 2,766 per Mt which could be contributed to the weakening of Sri Lankan Rupee against US Dollar. China white pepper was reported stable and was traded at an average of USD 4,214 per Mt locally.
International market showed a rather stable outlook with only Indonesia origin recorded an increase. India black pepper was reported stable at an average of USD 4,484 per Mt. Indonesia black pepper was reported with an increase of 2% as compared to the previous week averaging at USD 1,808 per Mt whilst Indonesia white pepper was reported stable averaging at USD 3,110 per Mt. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were also reported stable and unchanged. China white pepper was reported steady and was traded at an average of USD 4,414 per Mt.
Prices at US market this week was reported quite stable, though business had become slightly unpredictable and slow due to the nation-wide lockdown as US became country with the most active cases of Corona Virus with 228,874 (as of 3 April 2020) and 6,095 total death. Many pepper origins were still very cautious when prices were already at very low levels and unlikely to fall further when US Dollar strong against International local currencies. 

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INDIA - Spice industry faces huge crisis after suspension of exports in wake of COVID-19

While Gulf countries had already suspended cardamom import, the export of cardamom, pepper and other spices has now been temporarily suspended due to coronavirus fears.

Even as the COVID-19 pandemic spreads across the globe and India has announced a nation-wide lockdown, the spice industry is facing a huge setback. Farmers and traders are facing an enormous crisis after the export of cardamom, pepper and other spices was temporarily suspended due to coronavirus fears.

Last week the Spices Board suspended the cardamom e-auctions scheduled at e-auction centres at Bodinayakanur in Tamil Nadu and Puttady in Kerala with immediate effect until March 31. This has only added to the farmers’ woes. Within a week, the price of cardamom dropped by more than Rs 1,000 per kg. Till the last week of January, the price of cardamom was nearly Rs 4,000 to 4,500 per kg in the retail market. But now it fallen to Rs 2,000 to Rs 2,300. Pepper prices also fell to Rs 290 from Rs 330 per kg. Vendors are also not willing to buy spices such as cardamom, pepper and coffee from farmers.

Johny Joseph Vattathara, who runs Spice More Trading Company in Kumily in Kerala’s Idukki which trades in black pepper, cinnamon, cardamom and coffee, said that the COVID-19 pandemic has severely affected the spices trading and market. “Cardamom is mainly exported to Gulf countries. When COVID-19 started spreading across the world, the Gulf countries temporarily suspended cardamom import from other countries. We lost many export orders from the Gulf, presently we have no idea when the issue will be resolved,” he said.

Cardamom is firstly bought by vendors from Tamil Nadu and they export the product to other countries including the Gulf. But after the coronavirus scare, foreign countries stopped buying cardamom and the price continues to dip,” Johny added.

“Now the auctions have been suspended in Kerala and Tamil Nadu, so the movement of spices from Idukki district has stopped entirely. In the last cardamom auction, the average price quoted was only Rs 2,336 per kg,” Johny said.

Idukki district in Kerala is India’s largest producer of cardamom. Most of the natives in Idukki are farmers and live solely on income from agricultural produce. So when the traders stopped purchasing spices from them, the farmers are now in dire straits.

Small-scale traders are also upset over the present situation in the spices industry. “We vendors normally purchase spices from the farmers. But now we don’t know how to sell the products purchased through auction. With the lockdown in place, the market will also be suspended till April 14. We have already purchased and stored huge amounts of cardamom and pepper from the farmers. Now we don’t know when we’ll be able to sell it to wholesalers,” said MJ Joseph Mattapparampil, a spices vendor in Idukki.

AA George, a cardamom vendor, said, “In the present situation we can’t buy cardamom or other spices from the farmers. We don’t know when we can sell to wholesale vendors or through auction. The vendors have also stocked large quantities of cardamom and they are facing a big problem in selling their product.”

“Because of the COVID-19 pandemic, there is trade uncertainty in all countries and this will affect the import of cardamom and other spices. In the present situation, the vendors are not willing to purchase,” George added.

PM Thomas, a farmer, said, “Agriculture is my only source of income. But three days ago I tried to sell 10 kg of pepper but no vendor was ready to buy the product. I don’t know how to manage the situation.”

This report by
https://www.thenewsminute.com

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IPC MARKET REVIEW - February 2020

PRICE HISTORY

As the outbreak of Corona Virus continued affecting around 109 countries all over the world with a death toll reaching 3,831 cases (as of 09 March), pepper price index for the 2th month of 2020 was reported with a negative outlook. The price index of black pepper for February was reported with a major decrease of 11.4% as compared with the previous month at 30.30 point (Table 1). In addition, when compared with February 2019, the price index of black pepper experienced 7% loss. Following the same trend, the price index of white pepper for February 2020 was also reported with a significant decrease as it recorded a 6.9% decrease as compared with previous month at 32.36 point. In comparison with the same period in 2019, the price index of white pepper experienced a more significant decrease by 13%.


In the 2th month of 2020, the composite price for both black and white pepper was reported with a negative outlook. Composite price of black pepper in February was reported at USD 2,254 per Mt, recording USD 290 per Mt loss as compared with January. Aligned with composite price of black pepper, composite price of white pepper was also reported with a rather significant loss as it dropped to USD 3,349 per Mt. Thus, recording USD 249 per Mt loss as compared with the previous month.


Pepper prices in the 2nd month of 2020, showed a negative outlook with Viet Nam origin recorded the highest decrease as opposed to the previous month. The farm gate price of black pepper in India was reported with a decrease by 3% as opposed to January, averaging at USD 4,390 per Mt (Table 3). In the local currency farm gate price of India black pepper was traded at an average of INR 313 per Kg. The decrease of India black pepper price could be contributed to the harvest season currently in full swing as well as the depreciation of Indian Rupee against US Dollar.

The price of black pepper in Indonesia (Lampung black pepper) was reported with a decrease by 3% as opposed to the previous month, averaging at of USD 1,742 per Mt. The decrease of Indonesia black pepper could be contributed to the sluggish demand and the weakening of Indonesia's local currency against the US Dollar (IDR 13,776 for USD 1). In local currency, the price of Indonesia black pepper decreased to an average of IDR 24,000 per Kg from IDR 24,614 per Kg

In February 2020, the farm gate price of Malaysia's black pepper was reported with a decrease by 4% as compared to the previous month, averaging at USD 1,800 per Mt. The decrease of Malaysia black pepper could be contributed to the decrease of pepper price in local currency and the weakening of Malaysia's local currency against the US Dollar (MYR 4.16 for USD 1) or a depreciation by 2% when compared with the January. In local currency, the price of Malaysia black pepper decreased to an average of MYR 7,490 per Kg from MYR 7,621 per Kg.

Furthermore, farm gate price of black pepper in Viet Nam was reported to have decreased by 6% as opposed to January averaging at USD 1,613 per Mt. The decrease of Viet Nam black pepper price could be contributed to the harvest season currently in full swing. In local currency, the price of Viet Nam black pepper decreased to an average of VND 38,500 per Kg from VND 40,875 per Kg.

Sri Lanka black pepper was reported with a staggering 11% deficit as opposed to January and was reported at an average of USD 2,931 per Mt. The decrease of Sri Lanka black pepper could be contributed to sufficient stock following end of harvest in January. In local currency, the price of Sri Lanka black pepper decreased to an average of LKR 531.92 per Kg from LKR 586.72 per Kg.

BLACK PEPPER
FOB price of black pepper for February 2020 also showed a negative outlook with only Malaysia origin was reported stable. India was reported with the same 3% decrease when compared to the January, averaging at USD 4,670 per Mt (Table 4). Furthermore, the FOB price of black pepper in Indonesia was also reported with a decrease by 2% as opposed to January, averaging at USD 2,161 per Mt. FOB price of Malaysian black pepper was reported stable at an average of USD 3,685 per Mt. Furthermore, FOB price of Viet Nam black pepper 500 g/l and 550 g/l were reported with a significant decrease by 16% and 14% respectively as compared to the previous month at an average of USD 1,964 per Mt and USD 2,060 per Mt respectively.

WHITE PEPPER
Farm gate prices of white pepper in February 2020 also showed a negative outlook (Table 5) as only Indonesia origin was reported stable. Indonesia Muntok white pepper was reported stable at average of USD 3,122 per Mt. In local currency, the price of Muntok white pepper was reported at an average of IDR 43,000 per Kg. Farm gate price of Malaysia white pepper was reported with a decrease by 3% as opposed to January at an average of USD 3,211 per Mt. Furthermore, Viet Nam white pepper was reported with a significant decrease by 8% when compare to the previous month, averaging at USD 2,409 per Mt. China market continued to be reported inactive in February as no business took place due to the outbreak of Corona Virus.


FOB price of white pepper showed a rather stable outlook with only Viet Nam origin was reported with a decrease. FOB price of Indonesia white pepper for February 2020 was reported stable, averaging at USD 3,716 per Mt. Furthermore, FOB price of Malaysia white pepper continued to be reported stable and unchanged. Whilst, FOB price of Viet Nam white pepper was reported with a significant dropped of 12% at an average of USD 3,069 per Mt .

 

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#PEPPER MARKET UPDATE 9TH MARCH 2020 – WEEK 11

Vietnam has exported roughly 25,600 tons of pepper in February, bringing the total pepper exported in the last 2 months to 40,600 tons, an increase of 11% compared to the first 2 months of 2019. We forecast March the total export volume will be easy to reach from 32 to 35,000 tons. All details data that we will collect and send you within next week.

Under the influence of #Corona Virus, the pepper market in Vietnam has had certain effects when prices decreased slightly over the weekend due to low demand and psychological factors affecting commodity prices. Furthermore, almost exporters covered enough raw material for Feb/First week March shipment and now keep sidelined.

After easier tone, the market has shown signs of recovery with some demand from India/Nepal and Eastern Europe. The USA market also recorded some demand for further shipment from June to December. However, business were slow due to collector/exporters/speculator prefer to offer promptly shipment and hesitating to offer full year shipment. In contrast to many other countries, Vietnam currency has strengthened against the USD and expected to continue until the second quarter of 2020 (equivalent to a price increased of about 10$/Mt).

China It seems has better control of the disease and we hope the situation will settled down soon. Border traded still tight and under strict control with costly. However, likely demand are returning soon. China reported trading its white pepper internationally with an average of USD 4,375 per Mt.

India as the harvest come to full swing Malabar black pepper was traded with a 4% discount on the price as compared to the previous week, averaging at USD 4,203 per Mt. Currency depreciation than USD from  last week.

Indonesia black and white pepper also down around 1 and 2% respectively at an average of USD 1,684 per Mt for black pepper and USD 3,053 per Mt for white pepper. Indonesian Rupiah also weakening than USD with 2% depreciation.

Malaysian an increase of 1% as opposed to the previous week, averaging at USD 1,767 per Mt for black pepper and USD 3,172 per Mt for white pepper.

Sri Lanka was also reported steady at an average of USD 2,937 per Mt.

Brazil market we heard continue firm and less offer from farmers/collectors. USD stronger against with Real.

 









WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade