VIETNAM - PEPPER MARKET UPDATE 15TH JUNE - WEEK 25

Pepper market week 24 was down in value of about 2.7% due to a collectors in Daksong (main pepper area) which has lost liquidity and unable to pay deeply in debts.

This cause to a lots of farmers/middlemans in a panic and forced to close the consignment of goods at other collectors warehouse to recover cash to avoid the risk of consignment, causing the price to drop quickly by 2.5% in 1-2 days (the material from 55,000 VND has dropped sharply about VND 53,500 as of today).

After the shock reduction, the market seems to have regained its balance and the upward trend/stable continues to be clearly shown by the increasing demand from oversea importers during the past week. Despite difficulties due to Covid - 19, the new price level has been firmly established because good demand from the EU/ASIA market.

Through a quick survey in raw material area, we would like to briefly outline the situation as follows;

-  Vietnam's inventory is still large. However, the current inventory is scattered from many different person such as;

+ Farmer households (estimated to hold 15-20% of inventory). We assess this stock has no selling pressure as it is concentrated among the wealthiest households. Farmers can stockpiling if prices go down. Its as frozen stock already.

+ Top 10 big exporters keeping around 25,000 tons. Other exporters around 10.000 tons more. Total exporters keeping 30,000 - 35,000 tons (We do not know how much quantity has been sold)

+ Four large domestic agents are holding about 20,000 tons at least.

+ Total exported within fitst 5 months 2020 reach 148.000 tons.

Therefore, regardless of the number of pepper crop production in Vietnam 2020, currently total quantity offering for export is not much available in the last 6 months of 2020.

- Its not much difference in the situation of the new crop 2021 such as drought or heavy rain, and there are also favorable weather areas and disadvantages… However, the main point is many farmers neglect and do not take care of pepper plantation as before because the current price is not attractive enough to take care and maintain. This may be the most important reason for a decrease in production in the coming seasons 2021.

We will have more surveys situation in August & another in October. We hope to give more useful and accurate information in the crop year 2020/2021.

Other information for reference;

- Brazil Currency fluctuations are very erratic with large amplitudes. Currently, inventory available for sale was negligible. Almost had to wait for a new crop at Para at the end of August/September.

- Indonesia It is forecasted that the crop size less by 20% and will be harvested by the end of July. Few boxes maybe available for August shipment for testing market.

- India Reopening again after long time lockdown due to Covid 19. India's market demand continues to increase compared to previous months.

- China Continued to participate in the market, but was less than in June due to the complicated situation of Covid-19. However, we expect more demand will coming in the next 1-2 weeks.

- America continued to participate in the market with orders delivered in the second half of 2020.

- Asia/EU We expect increase from the EU when other origin do not have big quantity for immediate shipment.

- Vietnam currency stronger than USD is foreseen.

WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade

CHECK ALSO OUR BLOG OF OFFERS - https://offers-peppertrade.blogspot.com/TODAY´S JUNE 08 OFFER:

VIETNAM - PEPPER MARKET UPDATE 08 JUNE - WEEK 24

The market has fluctuated throughout the week. However, at the end of the week 23, the market is still in an upward trend of nearly 2% from 54,000 VND on 1^st June and remained stable at 55,000 VND today. The domestic collectors continued to offer in small quantities and was hesitant in a tension between many exporters and domestic collectors/middleman.

After the price has changed dramatically in the last 2 weeks, the current price trend has become stronger and set a new price on the market. Oversea customers bought orders and looking for new inquiries in the third and fourth quarters 2020. However, the exporters was very cautious and only offer spot/prompt shipment instead of forwards shipment as before. Vietnam currency is still stronger trend than USD making Vietnam pepper price also higher.

Other information for your reference;

- In 2006; pepper price remained stable from January to May at 860 USD/MT. However, within 3 months, pepper price increased by 115% to 1,850 USD/MT (convert at current exchange rate).

- In 2011; the price of pepper at the beginning of the season was 4,340 USD but by the end of December it reached 7,122 USD. Increased 64%.

- In 2013 & 2014; the pepper prices at the beginning of the season reached 6,281 USD but increased 48% to 9,315$ in December.

2020;  Pepper prices still were at a loss for many farmers in this crop, a lot of farm households cut their pepper trees and converted other agriculture product. Currently, prices with increasing tendency have also stimulated farmers to take more care in their pepper plantation. However, the drought situation and many farmers who have changed to another product/cut their plantation not only in Vietnam but also other countries such as Indonesia/Brazil/Cambodia…We have a forecast that total crop production in 2021 will be significantly affected.

We will have a tour to survey the situation of pepper crop 2020 again from June 9 to June 17, 2020 and we will try to collect information to update you with the details in July.

WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade

CHECK ALSO OUR BLOG OF OFFERS - https://offers-peppertrade.blogspot.com/TODAY´S JUNE 08 OFFER:

INDIAN PEPPER PRICES MAY MOVE UP ON GLOBAL TREND

 June 05, 2020

 China’s increased buying has pushed up the global pepper prices, especially in Vietnam and Indonesia, while the rates in India have seen only a marginal improvement. Domestic growers, who have not benefited from the global price trend are hoping to see higher realisations on the anticipated pick-up in demand with the easing of the lockdown.

Prices have registered double-digit increases in Vietnam and Indonesia over the past one month, while in India it went up by 1.8 per cent. According to the International Pepper Community, Vietnam prices rose 18.54 per cent at $2621 per tonne on June 4 from $2211 in May 4. Likewise, Indonesian prices also posted 14.12 per cent increase from $2088 to $2383. However, Indian prices witnessed only a marginal rise at 1.8 per cent from $4,354 to $4,434. “So far, the Indian growers have not really benefited from the recent global price rise. However, we are hoping that prices would move up in the next few weeks with a likely pick-up in demand from North India after the easing of lockdown,” said MC Kariappa, Chairman of Kodagu Planters Association. Farm gate prices have moved up from around ₹290-300 levels two months ago to around ₹315-317 per kg.

High production cost

Kishore Shamji, Coordinator of Indian Pepper, Spice Traders, Growers Consortium-Kerala Chapter, said the Indian prices, which is hovering above $4,000, is already on the higher side due to high domestic demand equivalent to production. The higher prices have benefited farmers, but the high production cost is posing a problem. The cost of production can be reduced by improving productivity.

India is expecting 60,000 tonnes of production as against 55,000 tonnes last year. It is the intrinsic value of Indian pepper that brought selected buyers from the US, Canada, and Europe, who have special preference for Malabar Black Pepper or Tellicherry Garbled Extra Bold or Malabar Tellicherry Special Extra Bold, he added.

“It cannot be said that the prices of low quality pepper are rising in the international market. The prices that have dropped to $1,800 are now recovering as China becomes active and starts buying as much as the US does,” Shamji said.
However, the high piperine content of Sri Lankan pepper, which is above 10 per cent, has made the commodity from the island nation a preferred choice for the spices extraction industry after paying a premium price.

Price rise in Vietnam

Prakash Namboothiri, former president of All India Spices Exporters Forum, noted that the Vietnam pepper prices have witnessed a spike due to high buying from China and other markets because of a jump in business activities in the post-Covid situation. The Indian prices are already at 50-60 per cent higher levels than Vietnam. However, there has been a decent pick-up in Indian prices in the last couple of days.
According to him, the global pepper market last week saw some fluctuations as some speculators booked profits when the price has reached the expectation. However, the price has still increased 13.4 per cent within a week from May 25 to 31. Indian prices when compared to other origins are already 50-60 per cent higher to similar grades. India needs to work on reducing the cost of production to ensure the farmers to make more profits which should be the end benefit, he said.

Rosy outlook

An expert in the pepper sector said the absence of a domestic market has forced farmers in Vietnam and Indonesia to depend on international markets for sale at cheaper prices. The market for Indian pepper is mainly dependent on domestic demand, which is always constant. Since Indian prices are on the higher side, international buyers look for low-priced pepper. The pick-up in domestic demand is also likely to result in the inflow of pepper from countries such as Nepal and Sri Lanka.

However, the future of spices looks rosy as commodities such as pepper, ginger, and turmeric find application in immune therapy.




V Sajeev Kumar/Vishwanath Kulkarni Kochi/Bengaluru
https://www.thehindubusinessline.com/

RUSSIA - PEPPER MARKET & IMPORTS

IMPORT OF PEPPER BY RUSSIA
Russia, officially the Russian Federation, is a transcontinental country in Eastern Europe and North Asia. Russia is by a considerable margin the largest country in the world by area, covering more than one-eighth of the earth's inhabited land area. Furthermore, Russia actively imports pepper from various pepper producing countries for domestic consumption or for re-export.
In 2018, Russia was reported to have imported a total 8,047 Mt of pepper which 91% or 7,353 Mt of it comprised of whole pepper while 9% or 695 Mt of it was ground pepper. The average import of pepper by Russia in 2018 was reported to be 671 Mt per month with the highest quantity recorded in May with 1,048 Mt. The total expenditure of pepper import by Russia was reported to be as high as USD 26.2 Million, recording an average price of the total pepper imported by Russia at USD 3,050 per Mt for whole pepper and USD 5,547 Per Mt for ground pepper.
Year 2019 saw an increasing trend in term of quantity of pepper import by Russia. Russia was reported to have recorded a total of 10,306 Mt which 90% or 9,236 Mt of it comprised of whole pepper and 10% or 1,070 Mt of it was ground pepper. Thus, recording an increase of 28% when compared to the same period in 2018. The average pepper imported by Russia was reported at 859 Mt per month which peaked in December with 1,065 Mt. Although increasing in terms of quantity, Russia was reported to have spent 3% less on its pepper import, totaling at USD 25.4 Million, Thus, recording an average price of the total pepper imported by Russia at USD 2,356 per Mt for whole pepper and USD 3,471 per Mt for ground pepper or a decrease by 23% and 37% respectively as compared to 2018.
As of February 2020, Pepper import by Russia was reported with an increase of 38% as compared to the same period in 2019, totaling at 1,208 Mt which comprised of 86% or 1,038 Mt of whole pepper and 14% or 170 Mt of ground pepper. The total expenditure of pepper import by Russia as of February 2020 was reported with an increase by 12% when compared to the same period in the previous year, totaling at USD 2.9 Million. Thus, recording an average price of the total pepper imported by Russia at USD 2,353 per Mt for whole pepper and USD 2,943 per Mt for ground pepper.
The top five countries of origins of Russia's pepper as of February 2020 were reported to be Viet Nam with 672 Mt (an increase of 52% as compared to the same period in 2019), Indonesia with 225 Mt (an increase of 189 Mt), India with 135 Mt (an increase of 89 Mt), Sri Lanka with 88 Mt (a decrease of 24%) and Brazil with 57 Mt (a decrease of 66%). The decreased of Russia import from Brazil and Sri Lanka could be contributed to Russia preference of importing from other origins countries which offered more competitive price such as Viet Nam (an increase by 231 Mt as compared to the same period in 2019) and Indonesia (an increase by 189 Mt).

WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade

CHECK ALSO OUR BLOG OF OFFERS - https://offers-peppertrade.blogspot.com/
If you have a serious offer send us with a valid date to : manager@peppertrade.com.br

IPC PEPPER MKT REPORT No. 22/20, 25 - 29 May 2020

LOCAL MARKET 
Market this week showed mixed response with a rather positive outlook as only Indonesia's Muntok white pepper was reported with a decrease. In local market, Malabar black pepper was reported stable at an average of USD 4,043 per Mt. Indonesia black pepper was reported with an increase of 1% as opposed to the previous week averaging at USD 1,728 per Mt whilst Indonesia white pepper was reported with 1% deficit as compared to the previous week at an average of USD 2,913 per Mt. Malaysia's black and white peppers were reported stable and unchanged. Furthermore, Viet Nam black and white pepper were reported with significant increase of 17% and 11% respectively as compared to the previous week at an average of USD 2,093 per Mt for black pepper and USD 2,939 per Mt for white pepper. The increase of Viet Nam price could be contributed to the significant increase of China's pepper demand after China's lock down ended. Sri Lanka black pepper was reported steady and was traded at an average of USD 2,733 per Mt. China white pepper was also reported stable averaging at USD 4,114 per Mt.


INTERNATIONAL MARKET
International market showed similar mixed response with a rather positive outlook. India black pepper was reported stable at an average of USD 4,308 per Mt. Indonesia black pepper was reported with an increase of 1% as compared to the previous week averaging at USD 2,133 per Mt whilst Indonesia white pepper was reported with 1% deficit when compared to the previous week averaging at USD 3,468 per Mt. Malaysia black and white pepper continued to be traded stable and unchanged. Following the local market trend, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 7%, 7% and 10% respectively as opposed to the previous week at an average of USD 2,440 per Mt, USD 2,482 per Mt and USD 3,526 per Mt respectively. China white pepper was reported stable averaging at USD 4,309 per Mt.
US market was reported with a slow movement of several origins. Despite the time of year usually saw more stock of Sarawak from new crop, it was reported to be very quiet. Furthermore, as Indonesia and Brazil offered limited amount with no possible prompt shipment, Viet Nam was able to supply a large quantity to market. US stock for the 3rd and 4th quarters are yet to be covered while buyers are anxious on low price contract. 

 





WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade

CHECK ALSO OUR BLOG OF OFFERS - https://offers-peppertrade.blogspot.com/
TODAY´S JUNE 01 OFFER:
https://offers-peppertrade.blogspot.com/2020/06/no-item-fob-usdmt-eu-maint-port-nybal.htmlhttps://offers-peppertrade.blogspot.com/2020/06/no-item-fob-usdmt-eu-maint-port-nybal.html

VIETNAM - PEPPER MARKET UPDATE 25TH MAY - WEEK 22 - TREND IS UP

Pepper market has continuously increased this month from VND 38,000 in early May to VND 48,500 at the present. Price increase was up to 28% within 25 days and up from the bottom of 35.5% (VND 34,500) within 2 months. A jump in prices is beyond the expectation of almost all pepper producers and exporters not only in Vietnam but also worldwide. The market increased last time mainly due to the following reasons;

- After lock down due to the Covid-19 epidemic, Chinese customers returned to buy both black and white pepper in huge quantities (March and April bought above 20.000 tones and May is around above 10.000 metric tones) . In particular, white pepper is being bought by many and continuously.

- Pepper was low level and is considered to have been at the bottom already (VND 34,500 - 1,510$), so many speculators actively bought huge quantities of stock. This also contributed significantly to the price increase last time.

- Due to the Covid - 19, some countries producing and exporting pepper have been continuously restricted as harvesting, processing, freight forwarding, logistic service. This also makes pepper sometimes suddenly shortage in each different time.

- At low prices and a lot of farmers making losses, many farmers have left and do not continue to take care of pepper as the previous time, besides the weather in the pepper areas is drought. Therefore, pepper production in 2021 is maybe less than the 2020 crop.

- Many exporters sold short for long time shipments who have not covered raw material yet. They have to buy to ensure time of shipment.

- Some big oversea customers have not yet purchased enough quantity for orders in the 3rd & 4th quarters, so they continue to participate in the market in the coming month.

- At present, the situation in Vietnam is controlling Covid 19 quite well. Transportation service, logistics smoothly and quickly. Therefore the oversea demand for spice products in Vietnam is gradually increasing.

- Although the inventories of Vietnam pepper are still quite large, however, we assess that the pressure of circulation of these inventories is very low due to being scattered from farmers, middlemen, exporters ... They are not in a hurry to sell or be ready to freeze inventory if the market price decreases.

- Even at this level many farmers/collectors still think attractive and they have been buying more quantity to stockpiling from last week until now.

- Currently, it is almost the only Vietnam can supply a large quantity to the market while Indonesia and Brazil are offering very limited and not possible prompt shipment. Therefore, the demand for Vietnamese pepper is expected to continue to increase until next July at least (Indonesia harvests in July, Brazil harvests the second crop in August 2020).

- Contrary to many other pepper exporting countries, Vietnam's currency has been consistently stronger than the USD with a 1% over the past week, that makes pepper prices also up.
In my opinion, pepper prices will continue uptrend until the end of June/July. There will be some short-term corrections in July/August.


##черный_перец #специи #μπαχαρικά #μαύρο πιπέρι #توابل #فلفل اسود #मसाले #काली मिर्च #Gewürze #schwarzer Pfeffer #နံ့သာမျိုး #ငရုတ်ကောင်း #baharat #karabiber #vietnampepper #مصالحے #

WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade

The new crop of Brazilian Pink Pepper arrived

The new crop of Brazilian Pink Pepper started to arrive.
Now, it will be cleaned, re-dried, ventilated, passed through color screen equipment, graded, pass pesticides and biological analisis and cerificated and than packed for export.

It is a rather long processing as Pink pepper corns are fragile.

Packed usually is in 5 or 10 kg polybags vacuumed or with gastoxin injected to protect against contamination within paper cartons.

The first lots are usually the best, the most selected.

Shipments may be by the end os June however this year due to COVID 19 problems some delays may be considered.

Call us for firm offers and terms
manager@peppertrade.com.br

WHATSAPP +5511988027709
MAIL manager@peppertrade.com.br
TWITTER : https://twitter.com/peppertrade