CARDAMOM - INDIA -Lower arrivals continue to hit cardamom auctions

Kochi | Updated on February 11, 2020 Published on February 11, 2020

 Lower arrivals continue to witness cardamom auctions, even as the market has started witnessing a positive sentiment thanks to the upcoming Holi festival season.

This was evident in Monday’s auction when prices advanced further by Rs 70/kg across all categories following a revival of upcountry demand.

However, the quantity offered on Tuesday at Bodinayakanur was only 50 tonnes and traders hope that the market is likely to be stable especially with the surge in upcountry buyer participation.

They pointed out that January was considered as a lean month for cardamom demand in many upcountry markets following the extreme climatic conditions in North India. But relief from that severe weather conditions in many parts of the country is a contributing factor for reviving the demand, which is expected to continue in the coming days as well.

There is a positive movement after a month-long sluggishness. The sentiments so far were good, which is evident in cardamom movements in the wholesale markets of Delhi and surrounding areas, traders said.

In the morning session, the auctioneers Cardamom Growers Federation has offered 14 tonnes, while the offer made by KCPMC was 36 tonnes.
Trade analysts Acumen Capital Markets said that cardamom March futures gained by 1.67 per cent or Rs 60.80 to Rs 3697.50 per kg when closed on Monday.
The March futures price is showing some weakness on the daily chart.

REFERENCES
1 U$D =71,35 INDIAN RUPEES

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#BlackPepper - First Report after Lunar New Year

Vietnam; exported in the first half of January 2020 around 9,496 tons of pepper and possible export over 16,000 tons in January. That will be less than the same period 2019 (exported 19,773 tons) because Vietnam has a long holiday from 23rd to the end of January 2020.

Pepper market in general has slightly decreased because the carryover is still available while the new crop has started to harvest. It is expected that after a week more Daklak area will start to harvest, Daknong starting fully swing during this time. The supply of material to the market to be quite abundant from now to the end of March 2020.

However, it is difficult to predict the price when the pepper price is already very low, many farmers are at a loss and do not take care of the pepper plantation as before.

Manufacturers and exporters are quite cautious and rarely sell big short as in previous years because this price is not attractive, the profit margin is too low while the risk is high.

India; According to Cogencis, Pepper harvest in Kerala state has officially started in January 2020, but the output and quality of pepper are low due to adverse weather. Crop size in 2020 is forecast to increase by 30% from last year to 61,000 - 62,000 tons due to favorable weather in Kerala state.

According to Indian experts, pepper prices may decrease in the period February - March after the states of Kerala and Karnataka in the main season.
Brazil:In Brazil the strong fluctuations in the exchange rate in the last week, has contributed to some discounts below the level of the last week.
Against this favorable news for the importer, a week of heavy rains in ES(Port of Vitoria), affected the harvest and the delivery of dry black pepper and the weather forecast for February is not favorable
Further, the short availability of free containers and complicated documents processing are delaying contracted shipments.
The heavy rains cause a decrease in supply of pepper to local market, processors and exporters

It is generally understood that 60% to 70% of the ES crop has already been harvested.

Large consumer market;

China; Under the influence of the Corona virus and currently on the occasion of the Lunar New Year, almost all international border gates with Vietnam have closed. The quota trade with the pepper market was temporarily suspended. Demand for pepper from China, is expected to be very low/absent in the next 1-2 weeks.

America; High demand for whole year shipment, especially with delivery period in the second half of 2020. However, prices are not really attractive and risky, so some exporters in Vietnam are still hesitant.

Nepal & the Middle East; Great demand for 5mm bold berries pepper with immediate shipment while limited supply and raw material.

EU; Focus on buying with spot orders and not much quantity.

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#CARDAMOM - In India High-priced inventory drives cardamom prices down

High-priced inventory drives cardamom prices down
V.Sajeev Kumar Kochi | Updated on January 29, 2020 Published on January 29, 2020

High-priced inventory, both at primary trade centres and consuming markets, seemed to have a say on cardamom prices, which dropped at Puttady auctions on Wednesday.
Because of this, traders remained inactive in the two trading sessions and that impacted the prices in spite of lower arrivals. There was no active involvement of buyers. Many of them are on a wait-and-watch mode to liquidate stocks and this led to lesser sales, lean buying and higher credit cycle.

Besides, the current harvest from the plantations are of inferior quality and smaller in size at the fag end of the season. This has also added to the sentiments.


The arrivals in the two trading session was 23.6 tonnes, which realised a combined average price of ₹3,660 per kg. The upcountry buyers were not active because of the huge time gap between the two trading sessions. The morning auction was completed in one hour, forcing buyers to wait for long for commencement of the second session, traders said.

In the morning session, the auctioneers Idukki Dist Traditional Cardamom Producer Company offered 11.8 tonnes, which realised an average price of ₹3,655.21 per kg. The highest price quoted for selected lots was ₹3,898.

In the evening session, Vandanmedu Green Gold Cardamom Producer Co offered 11.8 tonnes in which 10.8 tonnes realised an average price of ₹3665.92. The highest price quoted for selected lots was ₹3,905.
Trade analysts Acumen Capital Markets said that most active cardamom March futures gained by 1.64 per cent or ₹64.5 to ₹3,989.90 when last traded on Wednesday.

REFERENCES
1 U$D =71,35 INDIAN RUPEES

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MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade

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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MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade

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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