The Public Ledger
Monday January 14 2008
INTERNATIONAL cloves prices have shown sharp increases over these early stages of the new year, fuelled largely by strong domestic demand in Indonesia and heightened speculation.
In the week ending January 11, European traders quoted Indonesian cloves at $6,200 a tonne c&f Singapore, compared with $4,100 a tonne in the week ending December 21. Over the same period Madagascan cloves were said to have reached $5,000 a tonne cif against $4,450 a tonne previously.
One Bangalore trader told The Public Ledger that Indonesia's major cigarette companies Gudang Garam and Samporena were purchasing cloves at higher market prices in order to cover local demand. Also, according to the same trader, local prices in Indonesia were as high as Rp60,000 per kg, equating to $6,200 a tonne fob Surbaya. Moreover, the trader added that his company had purchased Indonesian cloves at $5,700 to $5,800 a tonne in the last few days.
The Bangalore trader viewed Madagascan cloves as being quoted higher than the indications from European traders, citing instances of offers at $5,500 a tonne fob Tamatave.
Emmanuel Nee of French trader Sivanil agreed that strong domestic buying by Indonesian cigarette companies was pushing up prices. In addition, some Indonesian speculators were sitting on stocks. "Each time they receive a single demand they push the price up by $100 [a tonne], " he said. The weakness of the US dollar was also lending support to prices.
Mr Nee explained that the week to January 11 had been paticularly active, helping to push prices up to the latest highs and attain the peaks that Indian traders had projected.
"Although they (Indian traders) have not been exaggerating the trend, they were very early in their predictions, "Mr Nee observed. "Today they are not really buying at this level but they want to tell everyone the market is moving up and will keep on doing so because this will help the domestic market to awaken. Indian buyers are enquiring a lot, asking for small shipments here and there, but they are not buying huge quantities at this level." In addition, Mr Nee claimed that those who use cloves for cooking applications tend to limit their offtake when prices are high.Moreover, he viewed the latest surge in prices as driven solely by speculation. "The speculation is done on the fact that Indonesia has been buying a lot so the available stocks in Indonesia are not a lot and the next crop will not be as good as they expect. If that is the case Indonesia will come to the market and buy again, " Mr Nee said.
Moreover, if the forthcoming Indonesian crop turns out to be very small, then domestic and world prices could see some further short-term increases, he noted.
Mr Nee commented further that Singapore traders were making only tentative offers but no actual deals were being made. "In the meantime, Madagascar shippers are not offering anything and Comoros is empty in cloves, " he said.
Claude Cuvillier of the French broker of the same name remarked: "It is difficult to find sellers in Madagascar."
Saturday, January 12, 2008
Cloves’ prices rise 25% as arrivals fall in Brazil
G.K. Nair
Kochi, Jan. 11 Export prices of cloves in Brazil have soared by 25 per cent this week following decline in arrivals at the market there.
Latest reports, according to information made available to Business Line by the Brazilian Pepper Trade Board (BPTB), which trades in spices, “the harvest is smaller than originally previewed – between 4,000-5,000 tonnes. We believe that bids below $4,700 would not be considered at this moment”.
New crop of cloves is slowly coming to the market. Slow drying process in Brazil is also contributing to the thin arrivals, it said.Bullish sentiment
The first week of the year showed a strong bullish sentiment among the growers despite buyers’ (exporters) absence due to holidays. As a result, export prices jumped to $4,800 and further to $4,990 a tonne, which is an increase of 25 per cent compared to one week before, it said.
According to earlier reports, the global output of cloves is estimated to be lower this year following drop in production in several producing countries.
The output in Sri Lanka where harvesting is to take place this month is estimated to be around 2,000 tonnes as against the earlier projection of 5,000 to 6,000 tonne.
Similarly, in Madagascar also it is estimated to be between 1,500 tonnes and 2,000 tonnes as against its normal production of 12,000 tonnes. In Zanzibar it is estimated to be 800 tonnes where the normal output used to be 4,000 tonnes.
The prices quoted here is $5,400 a tonne. Comoros is reported to have produced only an estimated 600 to 700 tonnes and the entire quantity has been sold out.Indonesian output
In Indonesia, the world’s largest producer of cloves, where harvesting is in March/April, the total production is estimated to be around 20,000 tonnes, which is 20 per cent of its total output.
Indonesia had a bumper crop with a total production of around 80,000 tonnes. The price quoted at present is $4,900 a tonne. Indonesia which uses a substantial quantity of its cloves in the tobacco industry is unlikely to have much for exports, a Bangalore-based cloves dealer told Business Line.
India is a major consumer of cloves with an annual demand of 6,000 to 8,000 tonnes. The indigenous production is estimated at below 2,000 tonnes. The gap in demand and supply is met by imports. The total import of cloves during April – October 2007-08 stood at 3,610 tonnes valued at Rs 44.33 crore against 2,881 tonnes valued at Rs 53.97 crore in the corresponding period of last fiscal. The unit value during the first seven months of the current fiscal was at Rs 122.80 a kg compared to Rs187.35 in the same period in 2006-07.
From The Hindu Business Line...
Kochi, Jan. 11 Export prices of cloves in Brazil have soared by 25 per cent this week following decline in arrivals at the market there.
Latest reports, according to information made available to Business Line by the Brazilian Pepper Trade Board (BPTB), which trades in spices, “the harvest is smaller than originally previewed – between 4,000-5,000 tonnes. We believe that bids below $4,700 would not be considered at this moment”.
New crop of cloves is slowly coming to the market. Slow drying process in Brazil is also contributing to the thin arrivals, it said.Bullish sentiment
The first week of the year showed a strong bullish sentiment among the growers despite buyers’ (exporters) absence due to holidays. As a result, export prices jumped to $4,800 and further to $4,990 a tonne, which is an increase of 25 per cent compared to one week before, it said.
According to earlier reports, the global output of cloves is estimated to be lower this year following drop in production in several producing countries.
The output in Sri Lanka where harvesting is to take place this month is estimated to be around 2,000 tonnes as against the earlier projection of 5,000 to 6,000 tonne.
Similarly, in Madagascar also it is estimated to be between 1,500 tonnes and 2,000 tonnes as against its normal production of 12,000 tonnes. In Zanzibar it is estimated to be 800 tonnes where the normal output used to be 4,000 tonnes.
The prices quoted here is $5,400 a tonne. Comoros is reported to have produced only an estimated 600 to 700 tonnes and the entire quantity has been sold out.Indonesian output
In Indonesia, the world’s largest producer of cloves, where harvesting is in March/April, the total production is estimated to be around 20,000 tonnes, which is 20 per cent of its total output.
Indonesia had a bumper crop with a total production of around 80,000 tonnes. The price quoted at present is $4,900 a tonne. Indonesia which uses a substantial quantity of its cloves in the tobacco industry is unlikely to have much for exports, a Bangalore-based cloves dealer told Business Line.
India is a major consumer of cloves with an annual demand of 6,000 to 8,000 tonnes. The indigenous production is estimated at below 2,000 tonnes. The gap in demand and supply is met by imports. The total import of cloves during April – October 2007-08 stood at 3,610 tonnes valued at Rs 44.33 crore against 2,881 tonnes valued at Rs 53.97 crore in the corresponding period of last fiscal. The unit value during the first seven months of the current fiscal was at Rs 122.80 a kg compared to Rs187.35 in the same period in 2006-07.
From The Hindu Business Line...
Friday, August 03, 2007
BLACK PEPPER STARWAR
This e-mail was received and distributed by ABEP - Brazilian Pepper Exporters Association and shows how the Black Pepper market strugle - The Bulls X The Bears...
----------------------
Dear Nagano San,
I would like to make a clarifications that Indonesian market never been weak in term of locall price. The price down from 4300 to 4100 only because of indonesian currency is weak again usd . In fact locall market price is very steady and strong eventhough the crop is starting coming in. Parity fob still in level usd 4100/mt without profit. Therefore Indonesian exporter must sell above this level in order to get some profit. Furthermore i never saw and heard in Usa market or Europe market Indonesian exporters being agressive to make an offer or try to sell cheap. Indonesian exporters until today dd.2 August very quiet and silent in the usa and europe market. No body really want to do anything due to steady locall market. I am sure the informations that has been spread in Brasil about the weak of Indonesia prices definatelly to mislead market price and in order to press the market in Brasil and this is the only ways to get the brasilian exporters nervous and willing to sell cheap price and foward shipment. Specailly when exporters and other who does not understand the real market situations for supply and demand will be nervous regarding the mislead market informationsof other origin down from whoever has intentions and interest to buy cheap.
For your knowledge right now many peoples use Indian futures market price to attack Indonesian exporters and try to get Indonesian exporters willing to sell cheap and follow the futures market in India. But unfortunatelly it does not work because Indonesian exporters fully awares of this tricks and we are fully awares that export out of India and import out of india since jan -june are still much more import than what they export. This export include the finish product such as oleoresin and ground products. And we fully understand that futures market in India only for peoples want to gamble in the paper . If we are talking Mg1 and try to buy real black pepper from local collector and farmers, definatelly we can not buy any black pepper because their local makret price much higher than exchange price.
If one day there are crazy people who has money and want to gamble and buy alot in futures exchange in India for nearby and later positions and keep holding the positions. I am sure that futures exchange in India will be cheos and price in the exchange will be up to the roof.
Hope this explanations can help you to explained to your exporters freinds in Brasil.
Finally the most important origin must understand the momentum of the pepper prices must be back to basic supply and demand. When the supply is much less than demand we must see the price must go up. Everybody can not run away from these facts.
Rgds
Yuli
----------------------
Dear Nagano San,
I would like to make a clarifications that Indonesian market never been weak in term of locall price. The price down from 4300 to 4100 only because of indonesian currency is weak again usd . In fact locall market price is very steady and strong eventhough the crop is starting coming in. Parity fob still in level usd 4100/mt without profit. Therefore Indonesian exporter must sell above this level in order to get some profit. Furthermore i never saw and heard in Usa market or Europe market Indonesian exporters being agressive to make an offer or try to sell cheap. Indonesian exporters until today dd.2 August very quiet and silent in the usa and europe market. No body really want to do anything due to steady locall market. I am sure the informations that has been spread in Brasil about the weak of Indonesia prices definatelly to mislead market price and in order to press the market in Brasil and this is the only ways to get the brasilian exporters nervous and willing to sell cheap price and foward shipment. Specailly when exporters and other who does not understand the real market situations for supply and demand will be nervous regarding the mislead market informationsof other origin down from whoever has intentions and interest to buy cheap.
For your knowledge right now many peoples use Indian futures market price to attack Indonesian exporters and try to get Indonesian exporters willing to sell cheap and follow the futures market in India. But unfortunatelly it does not work because Indonesian exporters fully awares of this tricks and we are fully awares that export out of India and import out of india since jan -june are still much more import than what they export. This export include the finish product such as oleoresin and ground products. And we fully understand that futures market in India only for peoples want to gamble in the paper . If we are talking Mg1 and try to buy real black pepper from local collector and farmers, definatelly we can not buy any black pepper because their local makret price much higher than exchange price.
If one day there are crazy people who has money and want to gamble and buy alot in futures exchange in India for nearby and later positions and keep holding the positions. I am sure that futures exchange in India will be cheos and price in the exchange will be up to the roof.
Hope this explanations can help you to explained to your exporters freinds in Brasil.
Finally the most important origin must understand the momentum of the pepper prices must be back to basic supply and demand. When the supply is much less than demand we must see the price must go up. Everybody can not run away from these facts.
Rgds
Yuli
Thursday, June 07, 2007
Pepper Exports from India
KOCHI – Bafana Enterprises, a Kochi-based spices processing and export firm, received highest amount of 15 mln rupees under the rupees 7 per 1 kg pepper export subsidy scheme during 2006-07 (Apr-Mar), by shipping 3,350 tn of Indian pepper.
Commerce ministry has provided 7 rupees per 1 kg as freight subsidy to boost pepper exports from the country during 2006-07.
The subsidy was limited to the export of a maximum of 20,000 tn of the commodity. India exported 28,750 tn pepper during the year.
Bafana also exported pepper to non-traditional markets such as Taiwan, Philippines, and Dominican Republic etc. during the year, said its Chairman Ratanlal Bafana.
New markets may appear insignificant in terms of quantity and value but they have helped to sustain momentum of exports during the year, he added.
Supply squeeze in Vietnam from later half of 2006 might have prompted buyers from these places to turn to India, he said.
"We have made a good beginning in non-traditional markets like Taiwan and we hope to build on it in coming days," he said.
Pepper exports from India to Taiwan rose to 236 tn during 2006-07 compared with 30-40 tn in preceding years, according to a Spices Board official.
Exports to Philippines also rose to 112 tn from a low level of less than 40 tn during the year, he added.
Top seven pepper exporters received around 80 mln rupees out of the total subsidy amount of 140 mln rupees during the year.
Kishore Shamji, another leading exporter, received 14 mln rupees under the subsidy scheme by exporting 3,000 tn. End
NewsWire18 Tel +91 (484) 2430-354
Send comments to feedback@newswire18.com
Commerce ministry has provided 7 rupees per 1 kg as freight subsidy to boost pepper exports from the country during 2006-07.
The subsidy was limited to the export of a maximum of 20,000 tn of the commodity. India exported 28,750 tn pepper during the year.
Bafana also exported pepper to non-traditional markets such as Taiwan, Philippines, and Dominican Republic etc. during the year, said its Chairman Ratanlal Bafana.
New markets may appear insignificant in terms of quantity and value but they have helped to sustain momentum of exports during the year, he added.
Supply squeeze in Vietnam from later half of 2006 might have prompted buyers from these places to turn to India, he said.
"We have made a good beginning in non-traditional markets like Taiwan and we hope to build on it in coming days," he said.
Pepper exports from India to Taiwan rose to 236 tn during 2006-07 compared with 30-40 tn in preceding years, according to a Spices Board official.
Exports to Philippines also rose to 112 tn from a low level of less than 40 tn during the year, he added.
Top seven pepper exporters received around 80 mln rupees out of the total subsidy amount of 140 mln rupees during the year.
Kishore Shamji, another leading exporter, received 14 mln rupees under the subsidy scheme by exporting 3,000 tn. End
NewsWire18 Tel +91 (484) 2430-354
Send comments to feedback@newswire18.com
FROM VIETNAM
7 June 2007.
Dear valued Buyers,
Pepper is very interesting markets in this year, prices are up, up so much and make many people are very nervous to trade this item. Nobody think it is high like that!!! Increadible prices, from usd 2,400 per mt to USD 2,700 per mt and until sometimes up to usd 3,950 fob for 500 gr/l. so many buyers/traders are reluctant to buy pepper, many processing factories in EU decided not to buy at high prices and wait. From Feb 2007 they wait prices better in Mar but prices was up, up and they have waited until now is FH June 2007. some factories they use last berries to process and hope prices comeing down.
The Giant traders are have not better positions. They sold alots forward contracts at cheap and hope they can cover in Mar/April and they told many buyers in EU not to buy and wait, prices would be sure down in Mar/April however until end May/FH June prices are not really better!!! And they sold already, many contracts need to be delivered. Some traders in Origin they don’t deliver, the Big traders are negotiating with buyers to delay 2 or 3 months to help them not to get BIG LOSS, many short positions we can see from very BIG traders in HOLAND in Vietnam. Some buyers agreed but some asked them to ship on time since they need very much pepper to process!
And we heard that some BRAZIL sold forward positions at very cheap levels!!!
What they(Big traders) have to do now??? They pread news to all buyers in EU/American not to buy to press prices down! therefore there is not so many demands from EU/America. Buyers wait, another hand traders continue to buy to cover their positions which some processing buyers not to agree to ship pepper late.
So one question! How many tons VN have? If VN have more quantity, prices shud be down but as you see many times prices are easy alittle bit, and then it goes up shuddenly!!! Sine NOT MUCH PEPPER left!!! And one thing is the true is that NEXT YEAR crop is worst than this year so prices will be very high since the farms/trees are in insects postions and many trees are dead!!! And insects spread out to next farms with high speed so we can say 40% Less quantity in Crop Next Year 2008!!!
Thank you very much and we do hope buyers/processing buyers have right decision to purchse goods on time with correct prices.
Kind regards,
Phan Minh Thong
----------------------------------------------------------------------
PHUCSINH COMPANY LIMITED.
Dear valued Buyers,
Pepper is very interesting markets in this year, prices are up, up so much and make many people are very nervous to trade this item. Nobody think it is high like that!!! Increadible prices, from usd 2,400 per mt to USD 2,700 per mt and until sometimes up to usd 3,950 fob for 500 gr/l. so many buyers/traders are reluctant to buy pepper, many processing factories in EU decided not to buy at high prices and wait. From Feb 2007 they wait prices better in Mar but prices was up, up and they have waited until now is FH June 2007. some factories they use last berries to process and hope prices comeing down.
The Giant traders are have not better positions. They sold alots forward contracts at cheap and hope they can cover in Mar/April and they told many buyers in EU not to buy and wait, prices would be sure down in Mar/April however until end May/FH June prices are not really better!!! And they sold already, many contracts need to be delivered. Some traders in Origin they don’t deliver, the Big traders are negotiating with buyers to delay 2 or 3 months to help them not to get BIG LOSS, many short positions we can see from very BIG traders in HOLAND in Vietnam. Some buyers agreed but some asked them to ship on time since they need very much pepper to process!
And we heard that some BRAZIL sold forward positions at very cheap levels!!!
What they(Big traders) have to do now??? They pread news to all buyers in EU/American not to buy to press prices down! therefore there is not so many demands from EU/America. Buyers wait, another hand traders continue to buy to cover their positions which some processing buyers not to agree to ship pepper late.
So one question! How many tons VN have? If VN have more quantity, prices shud be down but as you see many times prices are easy alittle bit, and then it goes up shuddenly!!! Sine NOT MUCH PEPPER left!!! And one thing is the true is that NEXT YEAR crop is worst than this year so prices will be very high since the farms/trees are in insects postions and many trees are dead!!! And insects spread out to next farms with high speed so we can say 40% Less quantity in Crop Next Year 2008!!!
Thank you very much and we do hope buyers/processing buyers have right decision to purchse goods on time with correct prices.
Kind regards,
Phan Minh Thong
----------------------------------------------------------------------
PHUCSINH COMPANY LIMITED.
Saturday, May 26, 2007
Re: Black pepper market has been flat
Well am an importer of Black Pepper in Pakistan.
In the last day or two market for black pepper has suppenly stopped and has reversed a lot.
Rumors effect a lot in a speculative market.
10 days back it looked that the vietnam prices might reach usd4400 or usd4500/pmt for 500gl,as there was no offer from any other country.
But suddenly from no where Malaysia is offering stock,Srilanka is offering,Indonesia is also offering.
And now no buyers.
The way i look at the current situation, Vietnam 2007 crop is damaged,maximum damage could be up to 20%.In the past Vietnam has been exporting like 120,000mt per year.Less 20% still 100,000mt of crop.
And till now the export demand has been very less due to the higher prices.
I ve heard that till now only 25000mt or more have been exported in this quantity last year carry over is also included.
May almost finished,july Brazil crops starts.
So i think that vietnam will have to lowers its prices.
Anonimous
In the last day or two market for black pepper has suppenly stopped and has reversed a lot.
Rumors effect a lot in a speculative market.
10 days back it looked that the vietnam prices might reach usd4400 or usd4500/pmt for 500gl,as there was no offer from any other country.
But suddenly from no where Malaysia is offering stock,Srilanka is offering,Indonesia is also offering.
And now no buyers.
The way i look at the current situation, Vietnam 2007 crop is damaged,maximum damage could be up to 20%.In the past Vietnam has been exporting like 120,000mt per year.Less 20% still 100,000mt of crop.
And till now the export demand has been very less due to the higher prices.
I ve heard that till now only 25000mt or more have been exported in this quantity last year carry over is also included.
May almost finished,july Brazil crops starts.
So i think that vietnam will have to lowers its prices.
Anonimous
Thursday, May 24, 2007
Re: Black pepper market has been flat
End Users demand has been decreasing whereas re-sellers are only buyers..............................A note of danger.........actual users have not bought when the exports were at peak(Q1)........In April the exports were poor overall................so chances of them buying is dull. I feel the market to go down sharply........
BE CAUTIOUS A GREAT FALL MAY BE AWAITING
SURESH
BE CAUTIOUS A GREAT FALL MAY BE AWAITING
SURESH
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