VIETNAM PEPPER & SPICES MARKET UPDATE 31ST MAY 2021 – WEEK 22

 

SPICES MARKET UPDATE

 

Pepper price today (May 31^st) fluctuates between 72,000 - 72,500 VND/kg. In the past 6 days, the pepper market fluctuated sharply, increasing from 5,000 VND/kg to 6,500 VND/kg in localities. With the increase of many times reaching 10% within just 3 days from early last week. However, at the end of week 21, pepper price increased by 7% and in whole this month May also increased by 4.5%.

 

Prices increased rapidly in the past week, many manufacturers and exporters surprising because the market still has difficulties and inadequacies such as; cash liquidity situation, freight are constantly increasing and it is difficult to get bookings especially to the USA, the epidemic situation is still complicated. However, the price of coffee and other agricultural products had an impressive increase in May, which stimulated farmers to sell coffee and increase pepper stockpiles. In addition, liquidity has gradually improved in the second half of May along with a sudden increase in buying from China.

 

Pepper prices this week in key provinces were significantly adjusted in an upward trend.

 

 

 

 

Although the increases are not as strong as 40-50% as in Feb / March, this price increase is considered sustainable, mainly due to export demand and purchase demand from many different countries such as the USA / CHINA / EU / ASIA... when the assessed inventory has decreased sharply over time. Almost have to continuing cover for Thirds and Fourth quarter shipment.

 

In May, it is forecasted that the number of pepper exports will reach 28,000 tons, bringing the total number of exports in the first 5 months of the year to 121,000 tons. The export volume decreased by 16% compared to 2020, but increase in the average export price, the export value still increased by 25%, reaching 387 million USD.

 

Malaysia; Although it is time to harvest the main crop, the serious disease situation has made it almost impossible for farmers to harvest and sell in the market. The main crop was thus severely affected and damage.

 

India; India will be reopening again during early next month June that make more demand coming in domestic market. After sometime interrupted due to Pandemic, almost try to ensure that purchasing and process. However, the processing are having difficulty for the domestic demand from Masala's manufacturers, when raw materials are not available. The difficulty in supply is pushing Indian pepper prices upward.

 

Brazil; Similar to Vietnam, Brazil's pepper price had a strong increase in the past week with an increase of over 10% from $ 3,600 FOB and currently at $ 3,950 - $ 4,000 FOB. Currently, Brazil's inventory is relatively low and production is forecasted to decrease sharply in 2021, besides the density of pepper will be difficult to reach as the BASTA standard as before. According to the information we received, Brazil is likely to face a severe drought from June to September and is forecast to be the worst drought in 91 years. This will definitely affect the output of pepper / coffee crop in 2021/2022.

 

https://www.reuters.com/business/environment/brazil-drought-alert-country-faces-worst-dry-spell-91-years-2021-05-28/

 

Indonesia; This year is forecasted to harvest in July & August, but according to many information, output will decrease by over 20% compared to the 2020 crop due to unattractive prices that have caused many farmers to switch crops and take less care of the pepper plantation.

 

Other information;

 

The epidemic situation is quite complicated in Vietnam today with a higher infection. A few cities in Vietnam have been locked down, major cities have officially implemented social distancing within 2 weeks. This can also affect the ability to transport and circulation of materials in the market.

 

Please note, in 2020, when Vietnam implemented social distancing, pepper prices had an impressive increase of over 50% in just 2 months. The situation in 2021 also has different changes, but the price trend maybe continue very stable next time.

 

We would like to send you a graph of the average pepper price from June to December in the last 10 years for your reference.

 

 

CASSIA/ STAR ANISE/ TURMERIC / GINGER;

 

The price of cinnamon has continuously increased rapidly due to great demand from EU / USA and ASIA countries. Especially great demand with cinnamon split / cinnamon cigarette / cinnamon broken cleaned…

Anise prices remain stable but the trend is forecast to increase due to strong demand from EU / USA and especially from China...

 

 

 

I would like to give you an indication price PEPPER / CASSIA / STAR ANISE / TURMERIC… based on NET FOB HCM as follows

https://offers-peppertrade.blogspot.com/2021/05/i-would-like-to-give-you-indication_31.html

VIETNAM PEPPER & SPICES MARKET UPDATE 24th MAY 2021 – WEEK 21

 

PEPPER

 

According to the Custom's data, in the first half of May 2021 Vietnam has exported 12,538 tons of pepper, with a turnover of 42.75 million USD, bringing pepper exports in the first 4.5 months of 2021 to reach 105,940 tons with a turnover of 326.54 million USD, down 19.21% in volume but up 17.82% in value over the same period last year. The average export price of pepper in the first half May reached 3,410 USD/ton, up 4.44% compared to the average export price in April 2021.

 

The pepper market has been moving sideways for the past 2 weeks but suddenly increased to 200 USD/MT, equivalent to a 7% increase in just 2 days. Currently, the price of raw materials is being offered at 70,500 VND – 71,000 VND, but the quantity offered is small from farmers and domestic collectors.

 

The main reason is that China is actively buying, in addition the pepper price is still attractive which has reactivated many speculators to increase hoarding despite the domestic market being slow in cash liquidity and the taking of containers still continue to be difficult for destination ports such as the EU and the US and North America.

The US and Europe have also gradually returned to normal. Besides the Middle East, China has also been working after a long holiday which has also boosted demand for pepper raw material increase rapidly.

 

 

CASSIA/ STAR ANISE/ TURMERIC;

 

Cassia raw material continuing up especially cassia broken when huge demand from EU  /  ASIA.

 I would like to give you an indication price PEPPER / CASSIA / STAR ANISE / TURMERIC… based on NET FOB HCM as follows

https://offers-peppertrade.blogspot.com/2021/05/i-would-like-to-give-you-indication.html

 

 

 

VIETNAM PEPPER & SPICES MARKET UPDATE 17th MAY 2021 – WEEK 20

 

 

PEPPER;

 

Market open today with steady/firm and almost unchanged from whole last week.

 

 

VIETNAM PEPPER EXPORTS IN FIRST 4 MONTHS

According to a data report of the Vietnam Customs, pepper exports in April 2021 reached 32,232 tons, an increase of 819 tons or 2.61% compared with the previous month. Decrease of 3,713 tons or 10.33% over the same period last year 2020.

The export turnover in April reached 105.22 million USD, up 12.52 million USD, or 13.51% over the previous month and 32.88 million USD, up 45.47% over the same period last year 2020.

 

The total quantity exported in the first 4 months of 2021 reached 93,557 tons, less 22,794 tons, or 19.59% less compared to the export volume of the first 4 months of 2020.

Export turnover in the first 4 months of 2021 reached 284.30 million USD, up 35.96 million USD, or 14.48 % over the same period.

 

The average export price of pepper in April 2021 at USD 3,265/ton, up 10.64 % compared to the average export price of March 2021.

 

 

IMPORT COUNTRIES IN FIRST 4 MONTHS

 

 

 

VIETNAM PEPPER IMPORTS IN FIRST 4 MONTHS

 

Regarding VPA data, in the first 4 months of 2021, Vietnam imported 11,341 tons, of which black pepper reached 7,749 tons, white pepper reached 3,592 tons. Compared to the same period in the first four months of 2020, the import volume increased by 4.7%. Indonesia – 4,842 tons, Brazil – 3,971 tons and Cambodia – 1,381 tons are the 3 largest pepper exporting countries to Vietnam. Compared to the same period in 2020, imports from Indonesia increased by 31.7%, from Cambodia increased by 22.1%, but imports from Brazil decreased by 22%. This quantity is likely already committed from last year. Next time import quantity will be reduced due to the price in Vietnam now being most competitive. 

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I would like to give you an indication price PEPPER / CASSIA / STAR ANISE / TURMERIC… based on NET FOB HCM as follows;

 https://offers-peppertrade.blogspot.com/2021/05/vietnam-price-indication-for-pepper_17.html

 

 

GLOBAL PEPPER OUTLOOK 2021

 

On May 13, 2021 IPC published a report called " GLOBAL PEPPER OUTPUT of which we present the most important points about the close future os this market

 

Global Pepper Export 2017 – 2020

Global pepper export in 2020 recorded slight increase by 2% at 481 KMT only taking into account major exporting countries. Top three exporters were Viet Nam, Brazil and Indonesia with a total share of 89%.

- Viet Nam exported 282 KMT in 2020. Recording 2% dip due to aggressive buying in the end of 2019 as well as the Covid-19 lockdown in 2020.

- Having the most competitive price,Brazil recorded an all time high for pepper export in 2020 with 89 KMT which was a 6% increase.

- Despite the Covid-19 lockdown, Indonesia recorded a 13% increase of export in 2020 at 58 KMT. Second semester of 2020, Indonesia recorded much higher export figures, reaching 64%.



Global Pepper Import 2019 - 2020

Top five importers of pepper in 2020 were United States of America, China, Viet Nam, Germany and India which accumulated to 243 KMT, a drop of 2% as compared to the accumulated import figures of the same 5 countries in 2019.

- United States of America recorded an increase by 3% of the pepper import in 2020 at 86 KMT with around K57 MT came from Viet Nam.

- Following the complete 2-months lockdown in 2020, China recorded a 3% dip in pepper import from Viet Nam at 56 KMT.

- As result of Covid-19 lockdown, Viet Nam import in 2020 recorded an 8% drop to 39 KMT in which around 20 KMT came from Indonesia

- Germany import in 2020 dropped by 4% to 32 KMT in which 14 KMT came from Brazil while another 12 KMT from VietNam.

-  Being the third most affected country by Covid-19, India import of pepper dropped by 7% in 2020 to 27 KMT in which 10 KMT came from Viet Nam.


Long-Term New York Pepper Price

Reaching its all time peak in July 2015, price of pepper has been declining ever since.
The decrease was mainly due to significant increase of supply from Viet Nam and Brazil over the past three years. In the past three, the price has been relatively stable with a slight tendency of decreasing.

Despite the Covid-19 lockdown and the economy shut-in major countries for several months, pepper price started to climb up in the second quarter of 2020 which has continued up to the beginning of 2021

Starting 2020, an increasing trend of pepper price has been apparent, albeit slightly.
On average in the course of 15 month since the beginning of 2020, pepper price increased by 5% for black pepper and 3% for white pepper. Furthermore, pepper prices in March 2021 were reported with an increase by 80% for black pepper and 48% for white pepper as compared with January 2020.

Summary

Fundamentally, we are entering in a phase where supply growth remains negative and demand continues to grow.

Supply growth is negative due to the non-existence of new plantations and falling yield due to poor upkeep.

Farmers/growers may start planting if prices rise to level that may justify planting.

The impact of the additional supply however will come only after 3-4 years from now.

One can expect prices to rise further.

ASTA Online 2021, May 11 – 13, 2021

 

 

 

 

IPC PEPPER MKT REPORT No. 20/21, 10 - 14 May 2021

 

LOCAL MARKET REPORT

As the Moslem around the world celebrates the Eid Fitr Mubarak 1442H amid the global pandemic of the Corona Virus, market this week showed mixed response. Malabar black pepper was reported stable, averaging at USD 5,037 per Mt. Indonesia black pepper was reported with an increase of 1% when compared to the previous week, averaging at USD 3,345 per Mt. Whilst, Indonesia white pepper was reported with 1% deficit as opposed to the previous week, averaging at USD 6,021 per Mt. Malaysia black and white peppers were reported with an increase of 1% and 2% respectively when compared to the previous week, averaging at USD 3,333 per Mt for black pepper and USD 5,027 per Mt for white pepper. Furthermore, Viet Nam farm gate price of black and white pepper were reported with 1% and 2% deficit respectively as co mpared to the previous week, averaging at USD 2,651 per Mt for black pepper and USD 4,222 per Mt for white pepper. Sri Lanka black pepper was reported with 1% deficit as compared to the previous week and was traded at an average of USD 3,330 per Mt. China white pepper was traded at an average of USD 6,000 per Mt locally.

INTERNATIONAL MARKET REPORT

International market also showed a mixed response as India black pepper was reported stable, averaging at USD 5,309 per Mt. Indonesia black pepper was reported with an increase of 1% as compared to the previous week, averaging at USD 3,984 per Mt. Whilst, Indonesia white pepper was reported with 1% deficit when compared to the previous week, averaging at USD 6,946 per Mt. Malaysia black and white peppers were reported with an increase of 2% and 5% respectively as compared to the previous week, averaging at USD 4,800 per Mt for black pepper and USD 6,500 per Mt for white pepper. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and unchanged. China white pepper was traded at an average of USD 6,200 per Mt.

 

 

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IMPORT OF PEPPER BY TURKEY - IPC MKT REPORTS

 

IMPORT OF PEPPER BY TURKEY

The Republic of Turkey is a country that occupies a unique geographical position, lying partly in Asia and partly in the Europe. Turkey is bordered by Greece, Bulgaria, Georgia, Armenia, Iran, Iraq and Syria. Turkey actively imports pepper from various pepper producing countries for its domestic consumption.

In 2019, Turkey was reported to have imported a total 6,249 Mt of pepper which 96% or 5,988 Mt of it comprised of whole pepper while 4% or 260 Mt of it was ground pepper. The average import of pepper by Turkey in 2019 was reported to be 521 Mt per month with the highest quantity recorded in May with 828 Mt. The total expenditure of the pepper import by Turkey in 2019 was reported to be as high as USD 11.3 Million, recording an average price of the total pepper imported by Turkey at USD 1,870 per Mt for whole pepper and USD 606 Per Mt for ground pepper.

Year 2020 saw an increasing trend in terms of quantity of pepper imported by Turkey. Turkey was reported to have imported a total of 6,529 Mt which 99% or 6,489 Mt of it comprised of whole pepper and 1% or 40 Mt of it was ground pepper. Thus, recording an increase of 4% when compared to 2019. The average pepper import by Turkey in 2020 was reported at 544 Mt per month which peaked in June with 1,153 Mt. In accordance with increasing in terms of quantity, Turkey\'s expenditure of pepper import was reported with an increase of 8% to a total of USD 12.2 Million. Thus, recording an average price of the total pepper imported by Turkey at USD 1,871 per Mt for whole pepper and USD 3,820 per Mt for ground pepper or relative stable for whole pepper and an increase of USD 3,214 Mt for ground pepper as compared to 2019.

As of February 2021, pepper import by Turkey was reported with an increase of 54% as compared to the same period in 2020, totaling at 1,363 Mt with all of them was whole pepper. The total expenditure of pepper import by Turkey as of February 2021 was reported with an increase by 48% as compared to the same period in 2020, totaling at USD 2.6 Million. Thus, recording an average price of the total pepper imported by Turkey at USD 1,908 per Mt for whole pepper and USD 7,547 per Mt for ground pepper.

The top five countries of origins of Turkey\'s pepper as of February 2021 were reported to be Viet Nam with 674 Mt (an increase of 28% as compared to the same period in 2020), Brazil with 394 Mt (an increase of 36%), Iran with 108 Mt (2020 n.a), India with 86 Mt (an increase of 45 Mt) and Indonesia with 46 Mt (2020 n.a).

 

 

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*BRAZILIAN PINK PEPPER SEASON IS SHORT !
CALL US NOW TO GARANTEE YOUR NEEDS OF GOOD QUALITY LOT !

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VIETNAM PEPPER MKT UPDATE 10th MAY 2021 – WEEK 19

 

 

 

 

 

Pepper prices last week decreased on 5th & 6^th May due to concerns about the disease situation in many provinces of Vietnam (411 cases per week in 26 provinces - currently Vietnam government still manages very well).

 

Along with that, the export situation slowed down because the freight rate continued to increase and it was difficult to get spaces containers for the US / EU / Canada routes. Currently, raw material is still stuck at collectors/exporters and not circulating smoothly. Therefore, the payment flow from abroad is also later than usual.

 

On the domestic market, the pepper harvest is over the past 2 weeks, farmers prepare to take care of the trees when the rainy season approaches. In addition, coffee prices in the past week with an impressive increase in 5 consecutive weeks, stimulating farmers to sell, which also increased pressure to pay coffee raw materials to small dealers/manufacturing coffee companies. Many manufacturing and exporting companies continue to lack local liquidity due to slow cash flow as well as the pressure to quickly pay raw materials to farmers/agents.

The market demand is still quite good as oversea customers still not covered enough stock yet for Q3 / Q4 shipment. USA / EU / ASIA continuously increase buying volume for the third quarter / fourth quarter delivery but exporters hesitate to offer long position due to global pepper crop was less than in previous years.

 

The long Chinese holiday season ended last week and Ramadan will end in the next 3 days (May 13^th). Therefore, demand is likely to increase even higher in week 19.

 

The USA & many EU countries are gradually moving to a normal. The rapid economic recovery in Europe, China - the world's largest raw material consumer, along with the USA, has boosted demand for many commodities. The S&P GSCI Index, which tracks price movements of 24 raw materials, has risen 26% this year.

However, the COVID-19 epidemic is still complicated in some countries, affecting the consumption, and it is likely that pepper prices in the short term will hardly spike as in the past due to concerns; Covid-19, many countries widen their social gap, the demand for consumption decreases "

 

 

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*BRAZILIAN PINK PEPPER SEASON IS SHORT !
CALL US NOW TO GARANTEE YOUR NEEDS OF GOOD QUALITY LOT !

peppertrade@olcom.com.br