CARDAMOM INDIA - MARKET UPDATE

Cardamom prices had an unbelievable move last year from around U$D 20/kg asked in October/November 2019 to U$D 30 - 40 asked these days.
What´s happening ? Will this trend continue, stop, or revert ?
Below some consideration about the possibilities

Current climate may prove unfavourable for cardamom crop
V Sajeev Kumar  Kochi | Updated on January 24, 2020  Published on January 24, 2020

Cardamom growers are worried over the climatic conditions prevailing in the growing tracts, which is likely to be unfavourable for the next crop season. Traders pointed out that the heavy winds lashing the growing regions may be a bad sign for the crop, as winds are always an indication of a dry spell. The moisture in the top soil will be absorbed by the breeze and result in the heating up of soil and, in turn, affect the plants. This could affect the reproductive phase of the plant by way of reduction in flowering and also in falling cardamom capsules.

THE WEATHER FORECAST
The IMD's forecast of delayed summer showers is causing concern in the cardamom growing belt of Kerala. With showers expected only by April, growers are worried how the next crop season will turn out.
Absence of rains in January, February and March will affect the growth of the plants. A normal crop can be expected when growing tracts receive a rain at least once a month.
The weather forecast is likely to affect the sentiments in the market and jack up prices. Growers are already worried over the heavy winds lashing across the growing regions, which may harm the crop.

THE AUCTIONS - JANUARY 24
Meanwhile cardamom prices edged lower when arrivals rose slightly at the auctions conducted at Spices Park in Puttady. There was an improvement in arrivals with a total quantity of 52.44 tonnes in two trading sessions, realising a combined average price of R$,711 per kg.

The majority of planters are holding their stocks and do not want to liquidate them in the wake of the price drop. The market has been witnessing a declining trend in arrivals after the Pongal holidays, and the decline is expected to continue.
Traders are anticipating a revival only after the Delhi polls, and an uptick in demand in many North Indian markets. Cold weather conditions are also a contributing factor for slow demand, coupled with a cash shortage in many markets.

Traders have also a raised concerns on the quality of capsules available in the market in the wake of the last round of harvest this season.

In the morning session on Thursday, auctioneers SpiceMore Trading Company offered 30.2 tonnes in 146 lots, of which 28.5 tonnes realised an average price of  R$ 3,746.17 per kg. The highest price quoted for selected varieties was R$ 4,042 per kg.
In the evening trade on Thursday, auctioneers Sugandhagiri Spices Promoters and Traders offered 22.2 tonnes of 124 lots, which realised an average price of R$ 3,676.81 per kg. The highest price quoted for selected lot was R$ 4,351 per kg.
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REFERENCES
1 U$D =71,35 INDIAN RUPEES
3784 INDIAN RUPEES = 53 U$D
3676 INDIAN RUPEES = 51,52 U$D
4351 INDIAN RUPEES = 63,50 U$D

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Black pepper in Brazil January 17, 2019

This Thursday and Friday a "bunch"of enquiries was arriving for Brazilian Black Pepper, from different buyers (or agents) to different exporters all trying to  get cheap price.

Actually it is unknown the exact number of enquiries because one buyer usually asks 2 or 3 or 4 suppliers. They go to the market and create an illusion of a big demand.


Anyhow bids @1875, 1850 and even 1800 abound. However this fact has a contrary effect -such activity actualy turns the market stronger, with some reliable exporters stepping out waiting how things will evolve next week.
This because beyond new orders, there are exporters that sold short at the end of the year and now try to cover their commitments.


All-in-one this situation signals an uprising trend in  Brazilian Pepper price.
With Vietnam beginning the new Year celebrations a clearer picture might be seen ofter 2 weeks time.
MW

IPC MARKET REPORT No. 01/20, 30 Dec. 2019 - 03 Jan 2020

LOCAL MARKET
Market at the end of 2019 and the beginning of 2020 showed mixed response with only Indonesia and Malaysia origins recorded an increase. In local market, Malabar black pepper was traded with a 1% deficit as compared to the previous week with an average of USD 4,627 per Mt. In local currency, Malabar black pepper was traded at an average of RS 330 per Kg. Indonesia black pepper was reported stable at an average of USD 1,761 per Mt. Whilst, Indonesia white pepper was reported with an increase of 2% as compared to the previous week averaging at USD 3,091 per Mt. The increase of Indonesia white pepper could be contributed to the increase of the price in local currency which averaging at IDR 43,000 per Kg. Malaysian black and white pepper recorded an increase of 1% respectively at an average of USD 1,860 per Mt for black pepper and USD 3,292 per Mt for white pepper. Furthermore, Viet Nam black pepper was reported with a 1% deficit as opposed to the previous week at an average of USD 1,738 per Mt. Whilst, Viet Nam white pepper was reported steady at an average of USD 2,626 per Mt. Sri Lanka black pepper continued to be traded with a deficit and this week by 3% as compared to the previous week at an average of USD 3,607 per Mt. China white pepper was reported stable at an average of USD 4,338 per Mt.

INTERNATIONAL MKT
International market showed a rather stable outlook this week with only Indonesia origin recorded an increase. FOB price of India black pepper was reported with the same 1% deficit as compared to the previous week at an average of USD 4,907 per Mt. Indonesia black pepper was reported steady with an average of USD 2,181 per Mt. Whilst, Indonesia white pepper was reported with an increase of 2% as compared to the previous week with an average of USD 3,680 per Mt. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and unchanged. In international market China was reported steady with an average of USD 4,438 per Mt.

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SEASON GREETINGS

Wish you all Readers, Clients and Friends a Prosperous and Bullish New Year !

THANK YOU FOR YOUR CONTINUOUS SUPPORT !

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MAIL manager@peppertrade.com.br
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IPC MARKET REPORT No. 51/19, 16 - 20 December 2019

LOCAL MARKET
Market this week showed mixed responses with India and Viet Nam origins recorded with an increase. In local market, Malabar black pepper was traded with an increase of 1% as compared to the previous week with an average of USD 4,746 per Mt. Indonesia black and white pepper was reported stable at an average of USD 1,750 per Mt for black pepper and USD 3,035 per Mt for white pepper. Malaysian black and white pepper was traded negatively with 1% and 2% decreases respectively as opposed to the previous week at an average of USD 1,840 per Mt for black pepper and USD 3,258 per Mt for white pepper. Furthermore, Viet Nam black pepper was reported with an increase of 1% as opposed to the previous week with an average of USD 1,764 per Mt. Whilst, Viet Nam white pepper was reported steady at an average of USD 2,626 per Mt. After the continuous increasing trend lately, Sri Lanka black pepper was traded with marginal decrease and was reported with 1% deficit as compared to the previous week at an average of USD 3,822 per Mt. In the past four weeks China white pepper was continuously reported with a deficit and this week it was reported with a 1% deficit as compared to the previous week with an average of USD 4,350 per Mt.

INTERNATIONAL MARKET
International market reacted rather stable this week with only India recorded an increase. FOB price of India black pepper was reported with the same increase of 1% as compared to the previous week at an average of USD 5,027 per Mt. Indonesia black and white pepper was reported steady with an average of USD 2,167 per Mt for black pepper and USD 3,616 per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were also reported stable at an average of USD 2,330 per Mt, USD 2,395 per Mt and USD 3,480 per Mt respectively. In international market China was reported with a higher deficit by 3% as opposed to the previous week with an average of USD 4,450 per Mt.

IPC MARKET REVIEW - November 2019

During the course of 11 years, spot price on New York markets fluctuated and was reported to firstly spike up in November 2011 with USD 8,556 per Mt for black pepper and USD 12,922 per Mt for white pepper which then followed with decreasing trend which lasted for 3 year. The spot price on New York market then started to gradually increase in the middle of 2013 until it peaked in July 2015 and recorded the highest price in history of the pepper industry with USD 11,333 per Mt for black pepper and USD 16,496 per Mt for white pepper. Following the peaked in July 2015, the spot prices of black and white pepper gradually decreased and lasted longer, compared with the previous trend, until the present time with USD 2,977 per Mt for black pepper and USD 5,072 per Mt for white pepper recorded in July 2019. Furthermore, in the course of 11 years the lowest spot price was reported in March 2009 with USD 2,568 per Mt for black pepper and USD 4,025 per Mt for white pepper (Chart 10).

The shift in the stretching of the decreasing trend of pepper price in the past few years could be contributed to the significant increase of stock in the global market which imbalance with the demand for pepper. By the end of 2019, the global production of pepper is estimated to be 591,946 Mt.

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