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

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

 

Black pepper prices spike, likely to rise further

 

As demand outstrips supply and imports become expensive, black pepper prices have risen, prompting growers to resort to hoarding in anticipation of bigger profits. That in turn is increasing prices even more.

 PK KRISHNAKUMAR AUGUST 11, 2023 

Shrinking stock in the North Indian markets, drying up of illegal imports, hoarding and anticipated shortage in the next season due to the El Nino impact, have all pushed up black pepper prices in the country past Rs 600 per kg after a gap of several years.

The current year has seen the prices of several spices such as chilli, cumin, ginger and turmeric rally. Black pepper is the addition to the list. Black pepper prices have remained between Rs 400 and 500 per kg for some years now. Last year it spiked to over Rs 500 per kg before falling. This week, the price has climbed to Rs 625 per kg.
Pepper output in India this year, at about 64,000 tonnes, is said to be normal. The production in India has remained stagnant in the last few years but consumption has been rising annually and is much above the production level. Karnataka, followed by Kerala are the major pepper producing states. But the crop in Kerala, particularly in Idukki district, has come down with many farmers shifting to cardamom, which is more remunerative.

Higher consumption, to a certain extent, is met through imports, much of it illegal. Pepper import for use in the local market carries heavy duties ranging from 50 to 70 percent and a minimum import price of Rs 500 per kg from different countries such as Vietnam, Brazil and Sri Lanka, where the spice is cheaper. Pepper from these countries reaches India illegally by road from Myanmar or Nepal or through misdeclaration as other goods to evade duties during shipment.

``Strict monitoring by the Centre has checked illegal imports into the country. As a result, the stock in the North Indian market has diminished. This has led to an increase in the prices,’’ said Jojan Malayil, owner of Aromatics Products.
As prices started to rise a few weeks ago, growers began to hold on to the stock, pushing the rates up further. The festival season demand after September is expected to spur the prices again in the coming months. Industry expects the prices to reach Rs 650 per kg or more.
``The rally is partly driven by sentiment as the other spices have become dearer. Pepper prices had been flat for the past several years. With low supply, it has become a seller’s market. Also, there are concerns on the impact of EL Nino on the next (year's) production. We can get a correct assessment only by October-November,’’ said Gulshan John, MD of Nedspice India.

The pepper prices in Vietnam, the largest producer, and Brazil, the next biggest grower, are around Rs 300 per kg. Since the import is duty-free against export, Indian pepper exporters have been depending on the pepper from other origins for value addition and shipment. But still the Indian consignments are comparatively high priced in the global market, causing the pepper exports to remain low in the last few years.

Indian pepper exports dropped 18 percent year-on-year in FY23 to 17,958 tonnes. Exports touched 21,863 tonnes in FY22, helped by cheaper Vietnam pepper. But a rise in the prices of Vietnam pepper since, have curbed imports to India for export.

``This year too, Vietnamese farmers are holding back produce, though their production is higher. Even the Brazilian crop is good. But there is no aggressive selling. Maybe they are anticipating an increase in prices since the excess stock purchased during the corona pandemic years by consuming countries is almost exhausted,’’ said Cherian Xavier, MD of Plant Lipids, a major spice oleoresin exporter.
As per the research reports of Nedspice, the Netherlands-based spice processing and distribution company, global pepper production in 2023 at 5,20,000 tonnes will be lower by 10,000 tonnes than the total demand. Stocks at destinations and origin will still be sufficient to meet near-term demand, though increased interest rates are not favourable to speculators and those holding large stocks, the report said.

It pegs Vietnam production at 2,05,000 tonnes, 9 percent higher than the previous year. Brazil’s production is estimated at 1,12,000 tonnes, 5.4 percent higher from a year before. India’s production and Indonesian production at 64,000 tonnes and 42,000 tonnes respectively will be slightly lower than the previous year.
According to the report, the current market situation is uncertain although the long-term price trend is likely to be up because of decreasing global production.

PK KRISHNAKUMAR is a journalist based in Kochi.

https://www.moneycontrol.com/news/business/economy/black-pepper-prices-spike-likely-to-rise-further-11160931.html 

VIETNAM -MKT REPORT- CASSIA PRICE INCREASE STEADILY

 

 

 

Situation of cassia and aniseed have been very stressful, prices have increased daily, raw material is scarce.
After the Covid epidemic has been controlled, demand for aniseed and cassia increased sharply.
The strict control of cassia, aniseed material imported from China makes the goods more scarce.
China is actively buying aniseed flowers from Vietnam now.
Price of Cigarette Cassia – Split Cassia – Broken Cassia  increased sharply, price of aniseed increased even more strongly, even nearly doubling price at beginning of October.
Some warehouses regret that they did not buy material when price was low, when price has been up ad demand still tall, but they have no stock to sell.
It is forecasted that in coming time, when new crops have not yet entered (new crops of cassia and aniseed both start at March end and early April 2021), price of cassia and aniseed will continue to increase steadily. Only warehouses who gathered material at low prices can offer competitive prices. Some customers have a strategy of purchasing at a time of low price and accepting forward delivery, then this time they are winning big. 

IPC MKT REPORT No. 38/20, 14 - 18 September 2020

 

 

MARKET REPORT

Market this week was reported positively. In local market, Malabar black pepper was reported with an increase of 2% as compared to the previous week to an average of USD 4,428 per Mt. Indonesia black and white peppers were reported with an increase of 3% and 2% respectively when compared to the previous week at an average of USD 1,951 per Mt for black pepper and USD 3,800 per Mt for white pepper. The increase of Indonesia pepper could be contributed to the increase of demand while the stock was limited despite new product coming to the market. Malaysia black and white pepper were reported with an increase of 1% respectively as opposed to the previous week averaging at USD 2,420 per Mt for black pepper and USD 3,807 per Mt for white pepper. Furthermore, Viet Nam black and white peppers in local market were reported stable with a marginal increase, averaging at USD 2,013 per Mt for black pepper and USD 2,831 per Mt for white pepper. Sri Lanka black pepper was reported with an increase of 2% as compared to the previous week and was traded at an average of USD 3,123 per Mt while China white pepper was reported stable and unchanged.

International market showed with a similar positive outlook. India black pepper was reported with the same 2% increase as compared to the previous week at an average of USD 4,700 per Mt. Indonesia black and white pepper were reported with an increase of 2% respectively as opposed to the previous week at an average of USD 2,386 per Mt for black pepper and USD 4,457 per Mt for white pepper. Malaysia black and white pepper continued to be reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white peppers were reported with an increase of 1% respectively when compared to the previous week averaging at USD 2,500 Per Mt, USD 2,581 per Mt, and USD 4,020 per Mt respectively. China white pepper was reported stable and unchanged.

 

 

CIGARETTE CSSIA MKT IN VIETNAM SEPT 10

Price of cigarette cassia is continuously rising because the recovery rate of cigarette cassia from tree is lower than the main season and price of cigarette cassia will take on other types of cassia.

This August season is short while exporters have received many orders for cigarette cassia. Quantity of goods in the future will be scarce, the price will continue to rise, so if you have demand, you should buy at this time for the best price. Next crop is in March, 2021.

Today most of factories are offering Cigarette Cassia cut at 5350 – 5560 Usd/Mt FOB Haiphong.

VIETNAM SPICES MARKET UPDATE 17TH AUGUST 2020 – WEEK 34

 

PEPPER
Last week, the pepper market increased about 2% with demand from China and the Middle East. The USA still shows a relatively small demand and only accepts to buy long time shipment orders while almost Vietnam exporters hesitate or withdraw. The EU is on holiday so demand continues to be quiet. We hope the market will be better next time when some countries reopen again.  In addition, Russian have found vaccines/India and the USA are also testing many vaccines in the final stage. Hope everyone/all of the world will be healthy, starting a new business cycle soon.

Current weather in Vietnam; After fluctuating and flooding, the weather is currently well evaluated in key pepper areas such as Daknong & Daklak. Impacts of the 2021 pepper crop are likely to be low in these two key provinces. We will send more information after the survey next October.

 Indonesia; According to the information received, the heavy rain and flood took place on a large scale, so the crop heavily affected both black and white pepper. Currently Indonesian prices are at a very high level with a reference price of $ 2,550 – 2,650 LASTA and $ 4,150 for FAQ white pepper.

 Brazil; Currently, it still offers competitively, but mainly delivered in quarter 4/2020

 

CASSIA
Heavy rain and flooding happen in the largest cinnamon area in Vietnam. Therefore, the harvest for the 2020 crop is affected and the price of cinnamon is likely to remain stable as demand from EU/USA/India/Bangladesh still supports the market.

 

STAR ANISE
The amount of inventory is still tight. The price is expected to be stable or increase in the coming time.

 

 

 

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VIETNAM PEPPER SITUATION AUGUST 2020

 

17^TH AUGUST 2020

In the first 7 months, Vietnam exported 186,160 tons of pepper (166,669 tons of black pepper, 19,491 tons of white pepper).

First half of August, Vietnam exported 7,215 tons of pepper and is forecast to reach at least 15,000 tons in August bringing the total pepper exports to 201,160 tons (180,169 tons of black pepper and 20,991 tons of white pepper).

Thus, we can have a rough look at the export pepper data of 8 months of 2020 as follows;

 

- Exported 180,169 tons of black pepper (1)

- Exported 20,991 tons of white pepper (2)

- Loss weight when processing white pepper 25%; 6,997 tons (3)

- Domestic consumption; 8 - 10,000 tons annually (4)

- Loss weight when processing ground pepper is about 5%; 1,000 tons (5)

 

Total exported and domestic consumption… in the first 8 months 2020 as;

 

(1) + (2) + (3) + (4) + (5) = 219,157 tons (X)

 

As many source and reports from the beginning/middle of this year from Exporter/Processor/IPC/VPA…;

 

- Carry over 2020 is about 20%. Estimated at 80,000 tons (a)

- Crop size 2020; from 230 - 245,000 tons (b)

- Imported from Brazil/Indonesia/Cambodia; 30,000 tons (c)

 

Therefore, the total quantity expected to be used for export 2020 remains;

 

(a) + (b) + (c) = 355,000 tons (Y)

 

So in theory, then;

 

1.      Quantity of pepper used for export for next 4 months from September to December (excluding carry over last year (a) 80,000 tons) as below;

 

(b) + (c) - X = 245,000 + 30,000 - 219,157 = 55,843 tons.

 

This number is easily achieved in the last 4 months of 2020 and certainly the inventories of the previous years will gradually reduce. The total crop size of Vietnam pepper 2020 is not enough for export. It’s quite reflective upon the situation after 5 years back as from 2016.

 

2.      However, if including inventory of 80,000 tons (a), the total quantity will be used for export for next 4 months from September to December as below;

 

(Y) - (X) = 355,000 - 219,157 = 135,843 tons.

 

Thus, the total quantity used for export is plentiful because next 4 months definitely the total quantity to export can not exceed 70.000 tons . However, please note; the inventory for pepper in Vietnam is at 15 - 20% in every year. It is considered to be largely frozen inventory and its concentrate to exporters, middleman and rich farmers stock. These inventories are less pressured to sell if the price is not attractive enough (lower than inventory price – maybe very high).

 

Note; The data above is our research and it’s for reference only because the statistical tool has many shortcomings and limitations.

*This report made and presented by the

 

IPC PEPPER REPORT No. 33/20, 10 - 14 August 2020

 

LOCAL MARKET

Market this week showed a mixed response with only Indonesia black pepper was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 1% when compared to previous week at an average of USD 4,199 per Mt. Indonesia black pepper was reported with 4% deficit as compared to the previous week at an average of USD 2,026 per Mt whilst Indonesia white pepper was reported stable averaging at USD 3,478 per Mt. The decrease of Indonesia black pepper price could be contributed to the harvest season currently ongoing, thus, pushing down the local price. Malaysia black and white peppers in local market were reported stable with a marginal increase at an average of USD 2,387 per Mt for black pepper and USD 3,754 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with an increase of 2% and 5% respectively when compared to the previous week averaging at USD 1,995 per Mt for black pepper and USD 2,829 per Mt for white pepper. Sr i Lanka black pepper was reported with an increase of 1% as compared to the previous week and was traded at an average of USD 2,864 per Mt.

INTERNATIONAL MARKET

International market also showed a mixed response as only India origin was reported with an increase. India black pepper was reported with the same increase of 1% when compared to the previous week at an average of USD 4,466 per Mt. Indonesia black pepper was reported with 4% deficit when compared to the previous week at an average of USD 2,472 per Mt whilst Indonesia white pepper was reported steady averaging at USD 4,098 per Mt. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable with a marginal increase averaging at USD 2,430 per Mt, USD 2,511 per Mt and USD 3,950 per Mt respectively. 

 

 

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GLOBAL PEPPER PRICES ON AN UPWARD TREND

 
Kochi  August 12, 2020

Pepper prices have started moving up globally, thanks to increased buying activities in the international markets.

Sri Lankan pepper prices was up by $400 per tonne, touching $3300-3500, while the rates of Vietnam, Indonesia and Brazil are also reporting an increase of $300-400 per tonne. Overall, there is a surge in procurement globally, said Kishore Shamji of Kishor Spices.
The Indian domestic market is also reported to be active in view of the ensuing festival demand. All sections of the trade are in a mood to cover their requirements as they are not expecting any downward price trend in the near future, he said.

The Kochi market was up by ₹1 per kg at Rs315 per kg for ungarbled on Wednesday and the farming community appears to be holding the crop, anticipating a further rise in prices, Shamji said. This is evident from the arrivals in the market, which was only at seven tonnes. The prices of Karnataka pepper are reported to be higher than Kerala due to good demand for bolder berries.

Moreover, heavy rains and landslides in the high ranges has hampered truck movement, bringing pepper to the market. Since the market is witnessing a good demand, he said the prices are expected to go up.

IPSTA Black pepper rates.
MG1 – ₹335 ; UNG-₹315 ; 500 G/L – ₹305 ; Arrival/Off-take – 7 tonnes

* Today:
1 USD = 74.8315 INR


V.Sajeev Kumar  for
Thehindubusinessline.com

 

 

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IPC PEPPER REPORT No. 31/20, 27 - 31 July 2020

LOCAL MARKET 

As the Moslem around the world celebrates the Eid Al-Adha Mubarak 1441 H amid the global pandemic of Corona Virus, Market this week showed mixed response with a rather positive outlook as only Viet Nam origin recording a decrease. In local market, Malabar black pepper was reported with an increase of 1% as compared to the previous week at an average of USD 4,122 per Mt. Indonesia black and white pepper were reported with an increase of 8% and 5% respectively as opposed to the previous week averaging at USD 2,193 per Mt for black pepper and USD 3,426 per Mt for white pepper. The increase of Indonesia pepper could be contributed to the increase of demand as well as the strengthening of Indonesian Rupiah against US Dollar (IDR 14,593 @ USD 1), an appreciation by 1% recorded. Malaysia black and white peppers in local market were reported with an increase of 1% respectively when compared to the previous week at an average of USD 2,301 per Mt for black pepper and USD 3,655 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported with 3% deficit respectively when compared to the previous week averaging at USD 1,970 per Mt for black pepper and USD 2,745 per Mt for white pepper. Sri Lanka black pepper was reported with a significant increase of 8% as compared to the previous week and was traded at an average of USD 2,858 per Mt. China white pepper was reported stable and unchanged.

INTERNATIONAL  MARKET

International market was reported with a more positive outlook. India black pepper was reported with the same increase of 1% as compared to the previous week at an average of USD 4,390 per Mt. Indonesia black and white pepper were reported with an increase of 7% and 5% respectively as compared to the previous week averaging at USD 2,665 per Mt for black pepper and USD 4,044 per Mt for white pepper. Malaysia black pepper was reported with an increase of 2% when compared to the previous week at an average of USD 3,609 per Mt whilst Malaysia white pepper was reported stable. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper as well as China white pepper continued to be reported stable and unchanged.

US market this week was reported with the increase of price of black as well as white pepper nevertheless buyers held on to source from producing origins. Muntok white pepper for CF August/September was reported at USD 4.600 per Mt.

VIETNAM PEPPER MARKET UPDATE 27TH JULY 2020 – WEEK 31

 

 

Viet Nam
According to preliminary data of Vietnam Customs, pepper exports in June 2020 reached only 20,449 tons, less 9,902 tons, a sharp decrease of 32.62% compared to the previous month and down 10,236 tons, or 33.36% less than the same period last year 2019. The pepper export turnover in June reached $47.17 million, down $13.74 million, or 22.55% down from the May 2020 and down $28.04 million, or 37.28% compared to the same period last year.

Accumulated export volume of pepper in the first 6 months of 2020 reached 166,812 tons, down 10,046 tons, or 5.68% compared to the export volume in the first 6 months of 2019.

The average export price in June 2020 reached $2,306/ton, up 14.95% compared to the average export price of May 2020.

The same export, Vietnam imported a sharp decrease compared with 2019 when total quantity only 14,899 tons of pepper, including 11,283 tons of black pepper and 3,616 tons of white pepper. Compared to the same period in 2019, import volume decreased by 34.3%. Vietnam imports pepper mainly from Brazil, Indonesia and Cambodia. In which, the import from Brazil was 100% black pepper with 5,802 tons, down 34.9%; imports from Indonesia reached 5,528 tons (of which 2,057 tons were black pepper and 3,471 tons were white pepper), down 50.4% over the same period.

Until July 20th, 2020, Vietnam exported 9,942 tons of pepper and is forecast to export 16 - 17,000 tons in this month, bringing the total export volume in the first 7 months reached 183,812 tons (first 7 month 2019 exported 203.737 tons).

Pepper market in week 30^th 2020 has increased slightly by 2% compared to week 29. The main reason is that exporters focus on covering raw material to ensure time shipment has been done before.

In general, demand in week 30^th more than week 29^th when many different countries have gradually increased production again after a long time restrained due to Covid 19 (especially EU/India). Demand is still quite slow but many requests from the EU/US for long shipment orders from Q4/2020 until the end of 2021.

The market is still quite sensitive and the price trend is likely to be quite stable in the near future.

 Brazil
Almost the same previous week when only possible to offer very limited quantities but not for prompt shipment. Delivery time is mostly in September/October as a seller option. We can foresee Vietnam exporters will not be hedging raw material from Brazil from now.

 Indonesia
Currently harvesting but less offered. Prices are still higher than Vietnam both black and white pepper especially muntok white pepper.

IPC PEPPER MKT REPORT No. 30/20, 20 - 24 July 2020

MARKET REPORT
Market this week showed mixed response with Indonesia and Viet Nam origin recording a decrease.
In local market, Malabar black pepper was reported with an increase of 2% as compared to the previous week at an average of USD 4,088 per Mt.
Entering the harvest season as well as the slow demand, Indonesia black and white pepper were reported with 12% and 5% deficit respectively as opposed to the previous week averaging at USD 2,039 per Mt for black pepper and USD 3,262 per Mt for white pepper.
Malaysia black and white peppers in local market were reported with an increase of 4% and 2% respectively when compared to the previous week at an average of USD 2,275 per Mt for black pepper and USD 3,626 per Mt for white pepper.
Furthermore, Viet Nam black pepper was reported with 1% deficit when compared to the previous week averaging at USD 2,040 per Mt whilst Viet Nam white pepper remained stable and unchanged.
Sri Lanka black pepper was reported with an increase of 4% as compared to the prev ious week and was traded at an average of USD 2,644 per Mt.
China white pepper was reported stable and unchanged. 

INTERNATIONAL MARKET
International market showed a similar trend as the local market. India black pepper was reported with the same increase of 2% as compared to the previous week at an average of USD 4,355 per Mt.
Indonesia black and white pepper were reported with 12% and 5% deficit respectively as compared to the previous week averaging at USD 2,488 per Mt for black pepper and USD 3,858 per Mt for white pepper. Malaysia black and white peppers were reported stable and unchanged.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper as well as China white pepper continued to be reported stable and unchanged.

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SPICES MARKET UPDATE 6TH JULY 2020 – WEEK 28

PEPPER

Viet Nam

Pepper export in June reached 25.000 tons, valued at 56 million USD, down 17.6% in volume and 8% in value compared with May, 2020. It also decreased by 18.5% in volume and by 25.5% in value compared to June 2019.

The average export price of pepper in June reached 2,240 USD/ton, up 11.6% compared to May, but down 8.6% compared to June 2019.

From January to June 2020, pepper export reached 172.000 tons, value 365 million USD, down 2.9% in volume and 19% in value over the same period in 2019.

In the first 6 months of 2020, the average export price reached 2,127 USD/ton, down 16.6%  compared with the same period in last year 2019.

Market slow since last week with very little demand from overseas customers. Almost kept watching. China/USA/EU customers are very quiet and we have not seen any activities through border trade last week. However, the market is still in uptrend with increased price 50$/ton in week 27. Vietnam exporters/processors covering third quarter shipment in silent.  

Some demand for long time shipment (fourth quarter and 2021 shipment) but we heard all exporters withdraw.

Brazil

The stock very tight and not available for prompt shipment. Price up to firm daily when exporters prefer to cover short and just can offer a few boxes September onwards shipment.

Indonesia

We heard white pepper crop less over 50%. Exporters just offering a few boxes at higher Vietnam price to test market situation.

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VIETNAM MARKET UPDATE 1ST JULY 2020 – WEEK 27

JULY 1st ,  2020

Viet Nam;

The pepper market uptrend again with 45$ increase in the first day of July after falling in the past week. Despite the negative information and lower oversea demand compared to the previous months. However, in June, Vietnamese also exported roughly 24,000 tons, bringing the total pepper exported in the first 6 months of 2020 to reach 171,115 tons (6 months of 2019; 180,276 tons). With the commitment was done, we will not be surprised if the export volume in July, 2020 to reach 18-20,000 tons at least, bringing the total export volume in the first 7 months of 2020 to approximately 190,000 tons. An impressive figure when total production of 2020 pepper crop is assessed to decrease by 15-20% compared to the 2019 crop.

Some other information for reference;

- Export in the last 6 months of 2017 (July to December); 89,529 tons

- Export in the last 6 months of 2018 (July to December);  103,737 tons

- Export in the last 6 months of 2019 (July to December); 106,727 tons

- Let's wait and see how many tons will be exported in the last 6 months of 2020

Although China's demand is currently low, they almost do not participate in pepper much over 5 weeks. However, the current price remains stable and it will be difficult to reduce in the near future due to stock coming too tight. Prices are still low and farmers are not willing to sell more when market correction. If the price is reduced, farmers immediately offer to drip and stop offering.

Brazil;

Currently, Brazil stock finished now and cannot offer immediate shipment. The second crop of Brazil will start in end August/early September, so it can only be offered during September onwards 2020 shipment. However, it is likely that Brazilian exporters have already sold about 15 - 20% of the new crop in advance and will prefer to cover from farmers first instead of continuing to offer further shipment.

Indonesia;

We heard heavy rains and strong wind continuously so maybe delays in harvesting until beginning August. Prices are not attractive to the farmer and the 2020 crop may reduce production. Crop 2020 expected to export is very small with about 17-20,000 tons so farmers/exporters will not hurry to offer.

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CASSIA PRICES EVOLUTION 2016-2020

CASSIA MKT UPDATE JUNE 20, 2020

20-Jun-20

The March cassia crop (the main crop) ended more than a month ago.
Due to Covid pandemic, transactions in March-April was bleak, but since May the orders have increased and factories have been active in collecting goods to perform the signed contracts.

Cassia is no longer in farmers now, local traders also sold nearly all their stock to factories.
Currently, the amount of cassia, especially cigarette cassia have started to be scarce, the price of split cassia, broken cassia have increased by USD 200-300/ton compared to the price of early June.

The prices of cigarette cassia in factories are very different.
Some factories offer a little higher than the price in early June, possibly because they have collected more goods. But there are factories offering cigarette cassia very high, more than USD 300-400/ton compared to the average price in early June.

The market of Vietnamese cigarette cassia during last 2 years is quite good, high demand due to Indonesia price which are much higher than Vietnamese prices, so buyers turn to Vietnam.

It is expected that in coming time, price of cassia will continue to be stressful, especially for cigarette cassia, when the demand in countries recover after the pandemic while inventories are not much, the new cassia crop (subsidiary crop) will be available in Nov-Dec.

As in 2017/18/19, the price of cigarette cassia usually increases sharply from July to year-end. 

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TODAY´S LAST
https://offers-peppertrade.blogspot.com/2020/06/steam-sterilized-product-eu-compliance.html