IPC Market report & Prices Buletin 26 july 2019

MARKET REPORT

Market this week showed a rather negative outlook.

Local Market
In local market, Malabar black pepper was reported stable with an average of USD 4,866 per Mt.
As Lampung is currently undergoing harvest period, Indonesia black pepper was reported with a 4% deficit as opposed to the previous week with an average of USD 1,930 per Mt. Whilst, Indonesia white pepper reported stable averaging at USD 3,468 per Mt. Indonesian black and white pepper in local currency were traded with an average of IDR 27,000 per Kg and IDR 48,500 per Kg respectively.
Malaysian black pepper was reported to be traded with 2% deficit as compared to the previous
week. Whilst, Malaysian white pepper was reported stable averaging at USD 3,926 per Mt.
Viet Nam black pepper was reported to be traded with 1% deficit as opposed to the previous week, averaging at USD 1,901 per Mt while Viet Nam white pepper was reported unchanged.
Sri Lanka black pepper continued to be traded negatively as the harvest period progressed. Recording a 3% deficit as compared to the previous week at an average of USD 2,524 per Mt.
China white pepper was reported unchanged averaging at USD 4,688 per Mt.

Currency x U$
CHINA -CNY - 6,88
INDIA - INR - 69,00
INDONESIA - IDR - 13,987
MALAYSIA - MYR - 4,12
VIETNAM - VND - 23,718

International Market
In international market, FOB price of India black pepper was reported stable at an average of USD 5,155 per Mt.
Indonesia black pepper was reported with a deficit of 4% as opposed to the previous week with an average of USD 2,373 per Mt. Whilst, Indonesia white pepper was reported unchanged averaging at USD 4,099 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 to be traded negatively with 1% deficit as compared to the previous week averaging at USD 2,273 per Mt, USD 2,338 per Mt and USD 3,423 per Mt respectively.
China white pepper was reported stable at an average of USD 4,888 per Mt in the international market.
US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

Prices of cardamom -India

Prices of cardamom, Queen of Spices, soar as wild weather wipes Indian production

Sudarshan Varadhan

NEW DELHI (Reuters) - Every year, tens of millions of Hindus flock to the Venkateswara Temple in the southern Indian state of Andhra Pradesh to pay tribute to site’s patron deity and pick up some of its famous sweets, the legendary “Tirupati laddu”.
The traditional delicacy is baked with sugar, flour, ghee, nuts and raisins and studded with cardamom, which has surged in price this year as India’s erratic weather ravages production of the pod, known as “the Queen of Spices”.

That spike has created new cost and supply pressures for buyers of the spice, like the temple, which offers a limited number of complimentary laddus to visitors and charges for extras.

“We are already incurring a loss making laddus, and this makes it worse,” a senior temple official told Reuters.

The temple typically buys 120 tonnes a year of high quality small cardamom pods, the most sought after kind, to meet demand. A year ago, it paid 1,600 rupees ($23.31) per kg for the spice, the official said. This month, it paid 4,400 rupees per kg.
The production problems stem from erratic weather in the south Indian district of Idukki, which accounts for at least a sixth of the global production and about three-quarters of India’s small cardamom output.

Last year, massive rains killed over 50 people and destroyed the district’s farmlands. This year, a weak monsoon season has wiped small cardamom production, threatening the livelihoods of thousands of producers.

That has hit both supply and quality, but more crucially, sent the spot prices of small cardamom, already among the world’s priciest spices, to record highs on Mumbai’s Multi Commodity Exchange this month.

That spike is good news for traders but depleted stocks mean farmers are unable to capitalize on the rally, while the surge in costs has also hurt downstream demand.

Temples and state governments are among India’s largest buyers of cardamom, accounting for up to 35% of the market, said Jojo George, Managing Director of KCPMC.
“Somebody who was buying three tonnes or so earlier is now buying only one ton,” George said.

‘MAD CHEF’

Cardamom’s complex combination of flavors, including elements of mint, citrus and herbs, make it a popular ingredient in a wide range of dishes, both sweet and savory.

Koushik S., popularly known as the “Mad Chef”, said the spice is essential to Indian cooking and supply issues affect his work.

“Next year, availability will be a problem and we might have to import from Guatemala, but then the quality is inferior,” said Koushik, who is a well-known Indian TV chef and is also a consultant to restaurant chains.

Guatemala is the largest cardamom grower but supply to India from the Central American country is mixed with lower quality cardamom, according to research by the Netherlands Enterprise Agency.

Over the past three months, N Seetharam Prasad, the chef at the four-star GRT hotel in Chennai, has complained five times about the low quality of his small cardamom supplies.

He uses the spice to make everything from biryani, a fragrant rice dish that enjoys a cult status in the country, to tea and sweets.

“I will never compromise on the quality of ingredients and will look to buy elsewhere if I don’t get good cardamom,” Prasad told Reuters.

Idukki, a small land-locked mountainous region located near the southern tip of India, has historically been ideal for cardamom, which demands heavy rains to thrive.

 P.C. Matthew, a farmer who lives in India’s cardamom capital of Vandanmedu in Idukki, expects production to fall 50% from a normal year due to lower rainfall, and for the harvest to be delayed to October from early August.
While overall rainfall at local and national levels has not varied significantly over time, analysis shows the incidence of short spells of intense rain and lengthy periods of little or no rain has increased.

India, in its annual economic survey last year, attributed this to climate change, and said revenue in areas entirely dependent on rains could fall by close to a sixth.

The increasingly erratic weather patterns lift risks for the $400 billion farm economy and its hundreds of millions of farmers, only a small fraction of whom have crop insurance
Since the start of the century, Idukki’s cardamom regions have had seven lengthy dry spells, defined as periods of 100 days or more of no rain, said Muthusamy Murugan, the officer in charge of the state-run Cardamom Research Station in the district.

That compares with 15 such spells for the entire 20th century. He expects the region’s cardamom production to fall 40%.

“Prices will continue to rise in the long-term and we have reached this point because of climate change,” said Joychan Kannamunda, secretary of the Cardamom Growers Association.
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https://www.reuters.com/article/us-india-water-cardamom/prices-of-cardamom-queen-of-spices-soar-as-wild-weather-wipes-indian-production-idUSKCN1UC087

Reference: Today, 1 USD = 68.7891 INR


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India - Poor demand keeps pepper prices stable

Kochi  July 15, 2019

Despite the monsoon playing truant in the pepper growing regions, domestic black pepper prices remain more or less stable because of low demand in the upcountry markets.
The farm gate price of ungarbled black pepper is hovering in the range of INR 325-350 a kg since April-May, which was INR 30 lower than the corresponding period last year, which was INR370.
The current price trend is likely to continue for the time being, said Kishore Shamji of the Kochi-based Kishor Spices.


Poor offtake

Traders are stuck with stocks due to poor offtake.
Heat wave conditions in many parts of North India also slowed down the demand, he told BusinessLine.
Though flowering has happened in many of the growing regions, absence of rains has affected pollination which normally takes place through rain water.
As the crop is affected, farmers are hesitant to sell their stocks. This will have an impact on production this year, which is likely to be in the range of 47,000 tonnes as against 55,000 tonnes in the previous year.
“It may be further down next year. It is too early to predict. It all depends on the progress of monsoon in growing areas,” Shamji added.
Shamji also raised apprehension over the falling international prices as it may lead to flooding of cheap Sri Lankan pepper in the domestic market under ISFTA.
While the import of Vietnam pepper through Sri Lanka has come down due to strict vigil, the illegal pepper shipments through Nepal is on the rise, he alleged.

According to Rajiv Palicha, Chairman, All India Spices Exporters Forum, there is a disparity in prices between Vietnam Asta grade and Indian product, which is selling at $6,100/tonne against $2,500/tonne of Vietnam and Indonesia and $2,300/tonne of Brazil.
However, there is enough availability in the domestic market to meet the requirements of the industry.
International prices are now competitive because of the supply situation and it is opportune for Indian pepper industry to explore overseas markets, Palicha said. To achieve this, he said, productivity should improve and new farm technologies are to be adopted.

Higher output

Sources in the spice industry pointed out that the international prices are down due to higher production in many countries compared with India.
As per the available figures, the world pepper production is expected to reach over six lakh tonnes, which is higher by 8.25 per cent than the previous year.
According to sources, the prices in other countries are governed by international supply and demand, while in India, it is on account of the strong domestic market and the price of pepper is a standalone phenomenon here.

V Sajeev Kumar Kochi | Updated on July 15, 2019 Published on July 15, 2019
Source:
https://www.thehindubusinessline.com/markets/commodities/poor-demand-keeps-pepper-prices-stable/article28446620.ece


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IMPORT OF PEPPER BY GERMANY by IPC

IMPORT OF PEPPER BY GERMANY
 

Germany, Officially the Federal Republic of Germany is a country in Central and Western Europe, lying between the Baltic and North Seas to the north, and the Alps, Lake Constance and the High Rhine to the south. It borders Denmark to the north, Poland and the Czech Republic to the East, Austria and Switzerland to the south, France to the southwest, and Luxembourg, Belgium and the Netherlands to the west.

Germany includes 16 constituent states, covers an area of 357, 386 square kilometres and has a largely temperate seasonal climate. With 83 million inhabitants, it is the second most populous state of Europe after Russia. Germany was a founding member of the European Economic Community in 1957 and the European Union in 1993. Germany has the largest national economy in Europe which is also the world's fourth largest by nominal GDP. Germany is also the world's third largest exporter and importer of goods (based on CIA World Factbook). Furthermore, Germany is one of the countries in Europe that imports quite a lot of pepper from various pepper producing countries whether for its domestic consumption or for re-export.

In 2017, Germany was reported to have imported to have imported a total 32,189 Mt of pepper which 89% of it comprised of whole pepper while 3,481 Mt of it ground pepper. The average pepper import by Germany in 2017 was reported at 2,682 Mt per month with the highest quantity recorded in October with 3,685 Mt. The total expenditure of pepper import by Germany amounted to USD 211.1 Million, recording an average price of the total pepper imported by Germany at USD 6,443 per Mt for whole pepper and USD 4,225 per Mt for ground pepper.
Year 2018 saw pepper import by Germany decreased by 5% as compared to the previous year totalling at 30,562 Mt which comprised of 27,939 Mt of whole pepper and 2,623 Mt of ground pepper. The average pepper import by Germany was reported at 2,547 Mt per month which peaked in October with 3,949 Mt. In accordance with decreasing in term of quantity, the pepper imports by Germany also decreased by 41% in terms of value which amounted to USD 124.4 Million. The average of total pepper imported by Germany was reported to be at USD 3,892 per Mt for whole pepper and USD 5,971 per Mt for ground pepper which meant a loss of 40% and profit of 41% respectively as compared to the previous year.

Pepper import by Germany as of April 2019 was reported an increasing trend by recording an increased by 11% as compared with the same period in 2018, totalling 9,452 Mt which comprised of 8,702 Mt of whole pepper and 750 Mt of ground pepper. The total expenditure of pepper imports by Germany as of April 2019 decreased by 25% as compared to the previous year in the same period, totalling USD 32.2 Million.

The top five most of pepper imported by Germany both whole and ground as of April 2019 reported to come from Brazil with 4,887 Mt (an increase of 31% compared with the same period in 2018), Viet Nam with 2,670 Mt (an increase of 1%), Indonesia with 598 Mt (a decrease of 26%), India with 430 Mt (a decrease of 51%) and Sri Lanka with 294 Mt (an increase of 34%). The significant decreased of Germany pepper import from Indonesia and India could be contributed that Germany started to shift import from other origins countries such as Sri Lanka (an increase by 100 Mt as compared to the same period in 2018) and Cambodia (an increase by 71 Mt) which exported 194 Mt and 32 Mt respectively in the same period in 2018.

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IPC MARKET REPORT No. 28/19, 8 July - 12 July 2019

MARKET REPORT
Market this week showed mixed response.
In local market, Malabar black pepper was reported stable and relatively unchanged as compared to the previous week with an average of USD 4,874 per Mt.
India black pepper price in local currency was reported at INR 334 per Kg on Thursday.
Indonesia black and white pepper was also reported stable as compared to the previous week with an average of USD 2,054 per Mt for black pepper and USD 3,435 per Mt for white pepper. Indonesian black and white pepper in local currency trade an average of IDR 29,000 per Kg and IDR 48,500 per Kg respectively.
Malaysian black and white pepper was reported stable and relative unchanged as compared to the previous week, averaging at USD 2,476 per Mt for black pepper and USD 3,911 per Mt for white pepper.
Viet Nam black pepper was reported to be traded with a 1% deficit as compared to the previous week, averaging at USD 1,931 per Mt, whilst Viet Nam white pepper reported unchanged, averaging at USD 2,847 per Mt.
Sr i Lanka black pepper continued to traded negatively and was reported the lowest ever prices in recent years. Recording a 23% deficit as opposed to the previous week at an average of USD 2,069 per Mt.
China white pepper was reported stable as compared to the previous week averaging at USD 4,706 per Mt.

International Mkt
In international market, FOB price of India black pepper was reported stable as compared to the previous week at an average of USD 5,165 per Mt.
Indonesia black and white pepper was also reported stable as compared to the previous week with an average of USD 2,512 per Mt for black pepper and USD 4,060 per Mt for white pepper.
Malaysia black and white pepper were reported unchanged, averaging at USD 3,685 per Mt and USD 5,275 per Mt respectively.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and relatively unchanged as compared to the previous week with an average at USD 2,309 per Mt, USD 2,374 per Mt and USD 3,459 per Mt respectively.
China white pepper was reported with a 4% increase as opposed to the previous week at an average USD 5,106 per Mt in the international market.

US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

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IPC MKT REPORT No. 27/19, 1 July - 5 July 2019

MARKET REPORT
Market in the first week of July 2019 showed mixed response albeit slightly negative.
In local market, Malabar black pepper was traded with a 2% deficit as compared to the previous week with an average of USD 4,879 per Mt.
India black pepper price in local currency was reported at INR 336 per Kg on Thursday.
Indonesia black pepper was reported stable, whilts Indonesia white pepper was reported to be traded with a deficit by 1% as compared to the previous week. Averaging at USD 2,052 per Mt for black pepper and USD 3,431 per Mt for white pepper. Indonesian black and white pepper in local currency were traded at an average of IDR 29,000 per Kg and IDR 48,500 per Kg respectively.
Malaysian black and white pepper was reported stable and relatively unchanged as compared to the previous week, averaging at USD 2,475 per Mt for black pepper and USD 3,908 per Mt for white pepper.
Viet Nam black pepper was reported to be traded with a slight 1% deficit as compared to the previous week, averagi ng at USD 1,945 per Mt, whilst Viet Nam white pepper reported unchanged.
Sri Lanka black pepper continued to be traded negatively and was reported with the lowest ever prices in recent years. Recording a 5% deficit as opposed to the previous week at an average of USD 2,681 per Mt. China white pepper followed the negative trend and was traded with a 2% deficit.

In international market, FOB price of India black pepper was reported with slight deficit of 1% as compared to the previous week at an average of USD 5,169 per Mt.
Indonesia black pepper was reported stable with an average of USD 2,509 per Mt whilst Indonesia white pepper was reported to be traded with a 1% deficit as compared to the previous week.
Malaysia black and white pepper were reported unchanged, averaging at USD 3,685 per Mt and USD 5,275 per Mt respectively.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with a 1% deficit as opposed to the previous week with an average USD 2,315 per Mt, USD 2,380 per Mt and USD 3,465 per Mt respectively.
China white pepper was reported with a 2% deficit as opposed to the previous week at an average USD 4,921 per Mt in the international market.
US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt. 

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Cloves Indonesia

Cloves prices expected to move up in Indonesia

Cloves market which was running quite subdued for a long time, saw some action last week as Indonesia cigarette companies covered almost 25,000 mts at IDR 80,000/- levels farm gate price from farmers/collectors.

This led to prices moving up in Indonesia and exporters who were very keen to sell, have now withdrawn offers and waiting for market to stabilize before giving fresh offers/taking orders.

Local exporters believe cigarette companies may again enter markets to cover some more quantities at these attractive levels.

This report by anonimus (broker from India)