#BLACKPEPPER -IPC MARKET REPORT

No. 07/20, 10 - 14 February 2020

MARKET REPORT
Market this week showed a mixed response with a rather negative outlook as only India origin was reported 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 4,382 per Mt. Indonesia black and white pepper was reported stable at an average of USD 1,753 per Mt for black pepper and USD 3,141 per Mt for white pepper. Malaysian black and white pepper were traded domestically with a 2% and 1% deficit respectively as opposed to the previous week averaging at USD 1,820 per Mt for black pepper and USD 3,239 per Mt for white pepper. Furthermore, the ongoing harvest season in Viet Nam pushed Viet Nam black pepper to be traded with a 2% deficit as compared to the previous week at an average of USD 1,597 per Mt. Whilst, Viet Nam white pepper was reported steady with an average of USD 2,410 per Mt. Sri Lanka black pepper was traded with a 1% deficit as compared to the previous week at an average of USD 2, 916 per Mt.
International market followed similar trend in local market as only India recorded an increase. India was reported trading its Malabar black pepper internationally with the same increase of 1% as compared to the previous week at an average of USD 4,662 per Mt. Indonesia black and white pepper were reported stable with an average of USD 2,174 per Mt for black pepper and USD 3,740 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 reported with a greater loss in international market and were traded with a 7%, 6% and 5% deficit respectively when compared to the previous week at an average of USD 1,900 per Mt, USD 2,000 per Mt and USD 3,000 per Mt respectively. The decrease of FOB price in Viet Nam could be contributed to China demand in recent week was static and it has an impact due to Viet Nam was the biggest supplier for China pepper market.
The Lunar New Year holiday which was followed immediately by the devastating outbreak of the Corona Virus have china market in the past 5 weeks were reported inactive as no business took place. Reports coming in from Hainan stating that people remain in their house and refraining from going out.

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Gulfood 2020: Coronavirus outbreak impacting food imports, say traders

Freight tariffs going up as are wholesale prices

Dubai: Food imports of specific items coming from China have been affected in the aftermath of the outbreak of novel coronavirus infection, food traders revealed at the 25th edition of Gulfood 2020 that opened in Dubai on Sunday.

Freight tariffs going up

Amit Sethi, managing director of Asia and Africa Food Trading, cautioned that if the status quo on the virus outbreak continued, bilateral trade between continents would be affected and consumers could expect a hike in food prices in the next six months.

“We as re-exporters to various countries from the UAE will be impacted. China was a major exporter to Africa. If we have 100 containers of food items we imported from China, in return there were limited amounts of agro items such as soya beans, raw almonds, beans and legumes coming in from Africa. So now freight tariffs have gone up as there are few containers coming from China. We are able to negotiate good rates in exchange for the few containers coming in from Africa. This is becoming difficult. If things continue this way for six months and the wholesale prices as well as freight tariffs continue to go up, it will impact food prices.”

Lower imports from China

Major wholesale and retail food trading companies in the UAE have shifted the major traditional imports from China to neighbouring countries and are absorbing the impact of spiked up food pricing in the aftermath.

Dhananjay Datar, owner of Al Adil Food Stuff Trading, said: “The impact of coronavirus on my line of business is negligible. But as I understand from the market sources here, those who have been dependent on products from China as well as the markets that are in proximity to China have been deeply affected and they may take time to recover. It is a known fact that food traders here in the UAE are more dependant on food stuff import from Thailand and Malaysia rather than China. So those companies may not be affected.”

He said: “We were importing spices like dehydrated garlic and onion powder, citric acid and lemon salt from China. We have stopped this temporarily and found substitute importers in India. Perceiving the demand, wholesale prices have gone up. For instance, dehydrated garlic powder which cost us Dh6 a kg from China is being obtained at Dh7.50 a kg. Similarly other prices are going up. But we are absorbing the price rise now and consumers will not be affected.”

Salim Musa Al Kandy, director of meat exports at Lulu Group, said: “All food stuff importers in the UAE will be able to absorb price increase at least for another six months. We have our stocks.”

The group has stopped exporting meats to China, which they were doing through Hai Phong port in Vietnam.

Kandy added: “Imports of certain items such as ajninomoto, China grass etc have been impacted while most others we are able to import from Turkey, India, Malaysia, Vietnam and other countries. The UAE ministry has taken all necessary precautions with recommendations from WHO and it’s not a cause for concern as of now. In fact, import of certain frozen items such as cabbage is still coming via seaports. We just got a container of frozen cabbage from China.”

Food security preparedness

Tariq Al Wahedi, CEO of Agthia Group, a semi-government enterprise that owns 40 per cent market share in flour, grains, animal feed and bottled water supply in the UAE, said: “As part of the nine member Food Security Alliance for the UAE food security initiative, we are well-prepared to be sustainable in the face of any such emergency such as national disaster or epidemic outbreak. We were able to help neighbouring countries such as Oman during cyclone Gonu.”

Al Wahedi added that in times of emergencies, there is a specific food protocol in place. “We take part in the alternative service where they train personnel so that they are capable of taking over the facility and production for our products on their own.

"The food security initiative has made sure we have enough supply to last us for a long time and the UAE is one of the most stable and sustainable countries with preparedness for any kind of natural or man-made disaster that can disrupt food imports," said Al Wahedi.

Published:  February 16, 2020 15:44 Suchitra Bajpai Chaudhary, Senior Reporter
https://gulfnews.com/uae/gulfood-2020-coronavirus-outbreak-impacting-food-imports-say-traders-1.69746636

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IMAGES FROM THE GULFOOD 2020 -I

His Highness Sheikh Hamdan Bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, on Sunday opened Gulfood 2020, the landmark 25th edition of the region’s longest-running annual food and beverage (F&B) trade show at Dubai World Trade Centre (DWTC).
CREDITS : SOURCE - https://gulfnews.com/photos/business/in-pictures-25th-edition-of-gulfood-kicks-off-1-1

A general view of the exhibition area at the Dubai World Trade Center.
Image Credit: Atiq Ur Rehman /Gulf News

Minister of Food Processing Industries, Government of India Harsimrat Kaur Badal (centre) with Pavan Kapoor, Ambassador of India to UAE; Vipul, Consul General of India, Dubai; Kamal Vachani, Group Director, Al Maya Group; with other officials during the inauguration of India Pavilion at Gulfood 2020.

https://gulfnews.com/photos/business/in-pictures-25th-edition-of-gulfood-kicks-off-1.1581862700915?slide=10

Cardamom exporters stay off Gulf Food Festival

A lower production and absence of required quality seem to have prompted many cardamom exporters here to skip the ongoing Gulf Food Festival in the UAE.
Traders said an overall drop in production at the fag end of the current harvest season and the non-availability of quality capsules prompted them to stay off the overseas trade meet.
According to traders, higher prices limit the scope for exports. The availability of good quality capsules and price stability will encourage exports. However, both are missing now. Less than 10 per cent of production is exported now, compared with 15 to 20 per cent a few years ago. The restrictions imposed by Saudi Arabia on cardamom shipments have also impacted overseas trade in the last two years.

Market steady

Meanwhile, the cardamom market in Bodinayakanur remained steady on Monday with improved arrivals at 83 tonnes, thanks to active upcountry participation and local buyers’ support. The steady market indicates that buyers are ready to enter at the current rates, traders said.
The combined average price in the two trading session was ₹3,375.
In the morning session, the auctioneers Mas Enterprises Ltd offered 41.3 tonnes of 220 lots in which 38.6 tonnes realised an average price of ₹3,400.54. The highest price quoted for selected lots was ₹3,764.
The offer made by Header Systems India Ltd in the afternoon session was 42 tonnes of 220 lots in which 39.8 tonnes realised an average price of ₹3,349.75. The highest price quoted was ₹3,986.

Trade analysts Acumen Capital Markets Ltd said cardamom March futures fell by 1.02 per cent or ₹33.4 to ₹3,240 when last traded on Monday.

V Sajeev Kumar Kochi | Updated on February 17, 2020 Published on February 17, 2020
https://www.thehindubusinessline.com

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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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