IPC - #PEPPER MARKET REPORT No. 16/20, 13 - 17 April 2020

LOCAL MARKET
Market this week showed a positive response with Indonesia origin reported with the highest increase. In local market, Malabar black pepper was reported stable averaging at USD 4,159 per Mt. Following the strengthening of the Indonesian rupiah against US Dollar by 4% as compared to last week's average, Indonesia black and white pepper were reported with an increase of 8% and 4% respectively as opposed to the previous week averaging at USD 1,591 per Mt for black pepper and USD 2,737 per Mt for white pepper. Malaysia's black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black and white pepper were reported with an increase of 1% respectively when compared to the previous week and was traded at an average of USD 1,594 per Mt for black pepper and USD 2,381 per Mt for white pepper. As a result of the strengthening of Sri Lankan Rupee against US Dollar, Sri Lanka black pepper was reported with an increase of 3% as compared to the previous week and was traded at an average of USD 2,732 per Mt. China white pepper was reported with a slight increase of 1% and was traded at an average of USD 4,263 per Mt locally.

INTERNATIONAL MARKET

International market also showed a positive outlook as only India and Malaysia origin were reported stable. India black pepper was reported stable at an average of USD 4,421 per Mt. Indonesia black and white pepper were reported with an increase of 8% and 4% respectively as compared to the previous week averaging at USD 1,967 per Mt for black pepper and USD 3,258 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 an increase of 2%, 2% and 1% respectively as compared to the previous week averaging at USD 2,090 per Mt, USD 2,120 per Mt and USD 3,020 per Mt respectively. China white pepper was reported with an increase of 1% as opposed to the previous week and was traded at an average of USD 4,463 per Mt internationally.

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#CARDAMOM - Lockdown takes a toll on cardamom

Shipments to Gulf countries in limbo

V Sajeev Kumar  - Kochi April 16, 2020

 Growers saddled with unsold stocks as Ramadan export potential goes awry

The Covid-19 pandemic has cast a shadow over India’s cardamom export prospects, particularly to Gulf countries during the holy Ramadan month, which begins on April 21 and runs up to May 20.

Exporters say Indian cardamom -- especially the 7 to 8 mm capsules -- was dominating in the Gulf markets because of its quality and price competitiveness vis-a-vis the Guatemalan variety. With the Gulf markets in the grip of the pandemic, cardamom exports from India have come to a standstill.
However, a Kochi-based exporter said his company is pinning hopes on the revival of exports to Saudi Arabia, which was suspended following issues connected with pesticide residue levels. The kingdom is reported to have taken positive steps in modifying the MRL levels, as Indian cardamom is a major ingredient in qahwa, a traditional coffee drink of the region.
Missed chance

It may be recalled that the issues connected with pesticide residue limits imposed by Saudi had impacted the prospects of Indian cardamom. Exports of the spice in 2019-20 was around 500 tonnes valued at ?150 crore compared to 2,000 tonnes in the previous year.

M Dhanavanthan, an exporter based in Bodinayakanur in Tamil Nadu, told BusinessLine that exporters have missed a business opportunity in the Ramadan period and the situation has made it even more difficult to clear the stocks. Most of the stocks are lying with farmers and traders. Only if the stocks are cleared, planters can invest in new crop, for which the first picking season begins by the end of May or early June.

Though the export market is likely to open up by August-September, there could be more stringent measures in the post-Covid days, he added.

The auctioneers in Vandanmedu said the stoppage of auctions since mid-March has caused accumulation of stock, leading to cash crunch to growers. It is estimated that around 800 tonnes of cardamom valued at ?200 crore could not be disposed of due to the suspension of auctions.

Bodinayakanur in Theni district, which is the primary trade centre for cardamom, is also a hotspot for the coronavirus. This has hindered the movement of cargo and traders. With the auctions suspended, there is confusion over pricing among farmers.

https://www.thehindubusinessline.com/markets/commodities/

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IPC REPORT - EXPORT OF PEPPER BY MALAYSIA

Malaysia, divided by the South China Sea into two regions; the Peninsular Malaysia and Malaysian Borneo, shared land borders with Thailand, Indonesia and Brunei Darussalam. Malaysia, known to be one of the major pepper producing countries in the world with pepper production estimated at 24,000 Mt in 2019, produces more than 98% of its pepper in the State of Sarawak. Producing both black and white pepper, Malaysia is reported to actively export pepper to various countries.
In 2017, Malaysia was reported to have exported a total of 20,969 Mt of pepper from which 50% or 10,484 Mt of it comprised of whole pepper and 50% or 10,484 Mt of it ground pepper. Malaysia on average exported a total of 1,747 Mt per month in 2017 which peaked in August with 2,575 Mt. The total revenue of Malaysia's export of pepper in 2017 was reported to be as high as USD 72.6 Million. Thus, recording an average price of the total pepper exported by Malaysia at USD 5,543 per Mt for whole pepper and USD 1,386 per Mt for ground pepper.
Year 2018 saw a decrease in term of quantity of pepper exported by Malaysia. Malaysia was reported to have exported a total of 13,882 Mt of which 73% or 10,119 Mt of it comprised of whole pepper and 27% or 3,763Mt of it ground pepper, recording a decrease of 34% when compared with 2017. The average export of pepper by Malaysia in 2018 was reported to be at 1,157 Mt per month which peaked in March with 1,954 Mt. In accordance with decreasing in terms of quantity, Malaysia's revenue from pepper export was also reported to have decreased by 31% as compared to the previous year to a total of USD 50.1 Million. Thus, recording an average price of the total pepper exported by Malaysia at USD 3,762 per Mt for whole pepper and USD 3,205 per Mt for ground pepper or a decrease by 32% for whole pepper and an increase of 131% for ground pepper as compared with 2017.
At the end of 2019, Malaysia was reported to have exported a total of 9,860 Mt which 87% or 8,537 Mt of it comprised of whole pepper and 13% or 1,322 Mt of it ground pepper. Thus, recording a decrease of 29% when compared to 2018. The average export of pepper by Malaysia in 2019 was reported to be at 822 Mt per month which peaked in August with 1,131 Mt. By the end of 2019, the total revenue of pepper export by Malaysia was reported to have reached USD 35.2 Million, recording a decrease by 30% as compared to 2018. The average price of the total pepper exported by Malaysia in 2019 was reported at USD 3,086 per Mt for whole pepper and USD 6,743 per Mt for ground pepper or a decrease by 18% for whole pepper and an increase of 110% for ground pepper as compared with 2018.
Pepper from Malaysia is widely traded in Asia, Europe, America, Australia and Africa. In 2019, Malaysia's top 5 Country of destinations for its pepper were reported to be Japan with 3,599 Mt (a decrease of 6% as compared to 2018), China with 1,991 Mt (a decrease of 48%), Taiwan with 1,172 Mt (a decrease of 25%), Viet Nam with 820 Mt (a decrease of 41%) and South Korea with 635 Mt (a decrease of 16%). The significant decrease of export to China was the result of China starting to shift importing pepper from other origins such as Indonesia and Viet Nam instead of Malaysia (an increase of 4,534 Mt and 2,617 Mt respectively as compared to the same period in 2019).

 

IPC MARKET REPORT - No. 15/20, 6 - 10 April 2020

As the total death from COVID-19 outbreak nearly reached 100,000 people, many countries enforced more rigorous measures in trying to lessen the spread of the Virus. Indonesia reportedly implemented a large-scale social restriction in their capital city which would last for the next two weeks, as market this week showed a mixed response. In local market, Malabar black pepper was reported with 1% deficit when compared to the previous week averaging at USD 4,177 per Mt. The decrease of Malabar black pepper price could be contributed to the weakening of Indian Rupee against US Dollar. Indonesia black and white pepper were reported with a slight increase by 1% respectively as opposed to the previous week averaging at USD 1,467 per Mt for black pepper and USD 2,628 per Mt for white pepper. The increase of Indonesia black and white pepper price could be contributed to the slight strengthening of Indonesia Rupiah against US Dollar. Malaysia's black and white pepper were reported stable aver aging at USD 1,705 per Mt for black pepper and USD 3,059 per Mt for white pepper. Furthermore, Viet Nam black pepper was reported stable and unchanged whilst Viet Nam white pepper was reported with 1% deficit as compared to the previous week and was traded at an average of USD 2,347 per Mt. Following the significant weakening of Sri Lankan Rupee against US Dollar, Sri Lanka black pepper was traded with a 4% deficit as opposed to the previous week at an average of USD 2,660 per Mt. China white pepper was reported with an increase of 1% and was traded at an average of USD 4,239 per Mt locally.
In contrary, international market showed a rather positively outlook with only India origin recorded a deficit. India black pepper was reported with the same 1% deficit as compared to the previous week at an average of USD 4,440 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively as compared to the previous week averaging at USD 1,819 per Mt for black pepper and USD 3,129 per Mt for white pepper. Malaysia black and white pepper continued to be traded stable and unchanged. Furthermore, contrary to local price, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 4%, 3% and 2% respectively as compared to the previous week averaging at USD 2,050 per Mt, USD 2,080 per Mt and USD 2,980 per Mt respectively. China white pepper was reported with an increase of 1% as opposed to the previous week and was traded at an average of USD 4,439 per Mt internationally. 

VIETNAM - PEPPER MARKET UPDATE 13TH APRIL 2020 – WEEK 16

Global pepper market is forecast to be slow due to affected by COVID-19.
Disease movements are still complicated, especially in the US&Europe - the major pepper markets in the world, will cause less import demand. The global pepper market maybe continue  faces disrupted supply due to social isolation requirements and restrictions on clearance of cargo from many countries around the world.

Through a quick inspection again with Customs & Department of Agriculture and Rural Development, Vietnam has exported up to 42,330 tons of pepper in March (higher than the figures we forecast last week over 8.000 tons). The first quarter 2020 export reached 83,246 tons that increasing by 12.6% compare with the same period in 2019 (exported 72,726 tons). This is new records from Vietnam and very impressive for everybody too.

March also recorded a sharp increase in imports to more than 10,000 tons from Chinese, it’s biggest quantity was imported within 1 month from China until now. Details of export/import data each country, I will try to analyze and send you within end this week.

Pepper market opening today with less offer from domestic suppliers. Market very steady and China continue buying beside other countries like ASIA/USA/EU.

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VIETNAM-Farmers, businesses struggle as pepper, cashew prices drop

VNA Tuesday, April 07, 2020 11:13



HCM City (VNS/VNA) - The price of pepper and cashew in southern Vietnam is falling as demand has dropped due to the COVID-19 crisis, affecting farmers and businesses.

Currently, the price of pepper in the Central Highlands and southern Vietnam is 34,500–37,500 VND (1.46–1.58 USD) per kilo, the lowest in the past few years.

Ba Ria – Vung Tau province’s pepper is among the highest priced in the region, but its price dropped by 2,000 VND per kilo compared to last week.

The end of February also saw a 5 percent drop of pepper price in Vietnam compared to the end of January.

Hoang Phuoc Binh, deputy chairman of the Chu Se District Pepper Association in Gia Lai province, said that while the farming areas and output of pepper in Vietnam and other countries have risen greatly over the years, demand for pepper has only increased by 2–2.5 percent each year.

The current supply of pepper is large since farmers in large farming areas have been wrapping up their harvest. But the COVID-19 pandemic is causing global market demand lower, so prices are dropping.

Farmers are losing 15,000 VND per kilo as they have had to sell at a low price to have enough money for workers' salaries and equipment.

Pepper export turnover in the first three months of the year was 156 million USD, 18 percent lower year-on-year.

Meanwhile, the price of cashew in southern provinces is 18,000–19,000 VND per kilo, which is about 10,000 VND lower than the beginning of the year.

Unfavourable weather has also dragged down the quality of cashews.

Some farmers are chopping down their cashew crop to switch to growing something else, while cashew processing businesses are also struggling with limited global demand.

Pham Van Cong, chairman of the Vietnam Cashew Association, said that exports and the price of cashew will drop greatly within the year, and that the industry’s 2020 goal of 4 billion USD in export turnover will have to be reevaluated.

Cashew factories have been urged to slow down their transactions, keep up to date with the market, and pay more attention to product quality.

The association, however, noted that demand would not be dramatically low since cashews are considered a nutritious food, and that businesses should not be too pessimistic./.

VNA
https://en.vietnamplus.vn/

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VIETNAM -PEPPER MARKET UPDATE 6TH APRIL 2020 – WEEK 15

First half of March 2020, Vietnam has exported pepper reached 16,689 tons with a turnover 35.21 million USD. Pepper exported in the first 2.5 months reach 57,128 tons, up 5.75% in quantity but down 11.24% in value over the same period last year. The average export price reached 2,110 USD/ton, down 5.25% compared to the average export price of February 2020.

In March, export reached 34,000 tons, bringing the total export volume in the first 3 months of 2020 to approximately 75,000 tons (same period in 2019 was 72,726 ton). This is very impressive record of Vietnam's pepper exports although the export volume to China decreased by over 10,000 tons in the first 3 months because influence of Covid 19. Details of export/import data each country, we will update and send you in the coming week.

At present, Vietnam has basically finished harvested 2020 pepper crop. Farmers/domestic agents only offer a very small quantity to cover temporary costs and continue storage due to low prices. The price is attractive so many customer/exporters… considering to stockpile.

China has better control of Covid, so it has been actively buying large quantity from last week especially white pepper. In addition, the market continues to receive great demand from the USA/UAE for both prompt and further shipment that make market stable and uptrend. Vietnam's currency last week slightly stronger compared to USD but not stability.

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