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.
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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

BRAZIL - PEPPER PRODUCTION SUFFERING BAD WEATHER

 PARTIALLY FLOADED PEPPER PLANTATION IN LINHARES - ES

The heavy and constant rains that have been happening non-stop for more than a month are hampering the entire production and transport chain, as many loads are not being delivered by producers on time and many loads are wet and need to be reprocessed.