This information provided by PTEXIM VIETNAM
Tuesday, November 23, 2021
Monday, November 15, 2021
VIETNAM PEPPER & SPICES MARKET UPDATE – WEEK 45
VIETNAM PEPPER EXPORTS FROM JANUARY TO OCTOBER 2021
According to the General Department of Vietnam Customs, in October 2021, Vietnam exported 16,759 tons, with a turnover of 72.6 million USD.
Compared to September, export volume increased by 9.3%, turnover increased by 17.3%
Country Quantity (MT) Value (USD)
America 3,943 $ 17,979,981
Germany 1,080 $ 5,324,664
U.A.E. 1,031 $ 4,116,715
Netherlands 980 $ 4,451,531
Philippine 662 $ 2,395,217
Korea 613 $ 2,754,986
China 546 $ 1,906,815
Egypt 532 $ 2,319,704
England 498 $ 2,086,002
France 479 $ 2,139,403
Others 6,393 $ 27,090,446
TOTAL 16,757 $ 72,565,460
COMPARATIVE EXPORTS IN TON OF THE FIRST 10 MONTHS OF THE YEAR
Continent JAN-OCT 2019 JAN-OCT 2020 JAN-OCT 2021
AFRICA 8,884 9,189 6,290
AMERICA 46,026 50,284 54,967
ASIA 144,299 126,376 115,757
OCEANIA 3,141 3,683 4,440
EUROPE 44,997 45,990 48,135
TOTAL 247,347 235,522 229,580
EUROPE
In the European region, imports increased by 3.9%, lead by the German market: 10,310 tons, up 9%; Netherlands 8,164 tons, up 27.8%; UK: 5,043 tons, up 8.8%, France: 4,756 tons, up 27.9%...
Imports decreased in Russia, Poland, Ukraine, Israel..
COMPARATIVE EXPORTS IN TON OF THE FIRST 10 MONTHS OF THE YEAR
Country JAN-OCT 2019 JAN-OCT 2020 JAN-OCT 2021
Germany 9,605 9,463 10,310
Netherlands 6,932 6,390 8,164
England 3,982 4,636 5,043
France 2,668 3,718 4,756
Russia 4,936 5,062 4,727
Ireland 6,043 4,519 4,132
Spain 2,174 2,354 2,503
Poland 2,403 2,871 2,104
Ukraina 1,686 1,592 1,366
Italy 823 755 876
Others 3,572 4,144 3,979
TOTAL 44,824 45,504 47,960
AMERICAS
Imports of the Americas increased by 8.9%, of which the US was the largest importer of Vietnam's pepper with 50,939 tons, up 8.9% over the same period.
Exports increased sharply in the markets of Canada, El Salvador, Dominica, Venezuela…and decreased in Mexico
COMPARATIVE EXPORTS IN TON OF THE FIRST 10 MONTHS OF THE YEAR
Country JAN-OCT 2019 JAN-OCT 2020 JAN-OCT 2021
USA 43,102 46,765 50,939
Canada 2,248 2,303 2,837
Mexico 447 866 638
El Salvador 121 134 298
Guatemala 108 216 255
Jamaica 173 486 175
TOTAL 46,199 50,770 55,142
ASIA
In Asia, imports decreased by 9.7%, of which China's imports decreased by 16.5% to 37,283 tons.
Imports of Saudi Arabia increased sharply by 35% to 14,610 tons and continued to be Vietnam's second largest pepper import market in Asia. India's imports 11,382 tons, up 1.2%; Pakistan: 9,877 tons, up 8.5%; Korea: 5,417 tons, up 7.7%, ...
Import markets decreased: Thailand, Japan, Myanmar, ..
COMPARATIVE EXPORTS IN TON OF THE FIRST 10 MONTHS OF THE YEAR
Country JAN-OCT 2019 JAN-OCT 2020 JAN-OCT 2021
China 54,649 44,674 37,283
U.A.E 9,478 10,825 14,610
India 17,785 11,251 11,382
Pakistan 9,389 9,100 9,877
Korea 4,093 5,028 5,417
Philippine 4,947 5,598 5,371
Thailand 6,161 4,600 3,890
Iran 5,187 3,320 3,759
Turkey 4,801 3,073 3,648
Japan 2,616 3,055 2,872
Others 18,734 18,076 12,411
TOTAL 137,840 118,600 110,520
AFRICA
The African region's imports decreased by 31%, of which Egypt decreased by 32.7% to 5,237 tons. Imports also decreased in South Africa, Senegal, Gambia, Tunisia, Sudan, etc.
COMPARATIVE EXPORTS IN TON OF THE FIRST 10 MONTHS OF THE YEAR
Country JAN-OCT 2019 JAN-OCT 2020 JAN-OCT 2021
Egypt 6,459 7,776 5,237
South Africa 2,702 2,630 2,410
Senegal 2,901 2,279 1,261
Gambia 807 1,103 896
Tunisia 435 491 364
Others 2,039 2,686 1,359
TOTAL 15,343 16,965 11,527
MARKET & PRICE TRENDS
Price continued to have downward corrections during this week with a corresponding decrease of nearly 2%. Here the reasons why:
1- There is a large domestic company that is trying to drive the market by selling lower prices on the market but immediately buying in larger quantities in the past week for November and December shipment through different dealers/ traders. (sell cheaper prices for small quantities but buy bigger quantities at market price). This has also caused a bearish correction
2- Financial being tight and cash flow when coffee crop is in main season. Dealers' priority is to do the coffee business when the current market is very attractive. Exporting manufacturers also sell inventory to increase the temporary budget when export cash flow is very slow due to congestion and shipping cargo longer than usual
3- In addition, Domestic speculation has taken profits during the past time. This also causes the carry over 2021 to become less, while the export volume in November & December is expected to be around 25 - 30,000 tons
4- The Vietnamese dong is still trending and the appreciation against the USD also makes the converted pepper price more expensive.
SUMMARIZING
Demand for pepper continues to be active in the US and EU markets both prompt and further shipment in Q1 & Q2/2022.
China continues to cover very slowly and it is possible that the import volume of pepper from China will be the lowest in the past 3 years, although the information we have received, the stock in China decreased rapidly in recent times.
End of December some small quantities will be available on the market. However, it will be very limited in December & January 2022. The pepper crop in 2022 continues to be delayed compared to previous years and it is forecasted that the main harvest will only be in March & April 2022
Monday, November 08, 2021
RGT Pepper Market Report Week 44/ 2021
Vietnam – after historic week over week extended gains, week 43 went a topsy turvy session wrapping the October month at level 88000 VND/kg with few shippers actively covering. By mid-week, latter went back into sideline, displaying another dull market scenario ending month.
Overall, October month displayed almost 8% increased from its start off, reaching highs of almost 9% from September month this year.
Week 44, beginning week of November pricing level of raw material were seen from 88000-87000 VND/kg with few sellers trying to bid as low as possible but then each time demand arises, market stood firm on its level.
New Crop 2022 – would likely to pose a challenge to farmers with a harvest delay of about two (2) months due to shortage of manpower attributed to the delay of coffee harvest period this coming Dec/January.
Indonesia – firm in its stance until today with indicative price that is about $4400 FOB for Lampung.
Muntok White boosted at level $7100-7300 FOB an alleged lacking supply from farmers’ side with almost remaining volumes suspected to be with big speculators. Furthermore, rumors circulating that next year crop will again drop with at least 30% compared to this year.
Brazil – Week 43 - while Northern Crop harvest is ongoing, demand continues to advance in good volume with price ranging from $4100-4300 FOB from Espiritu Santo seen with raw material at supportive level of R$19-19.50/kg. On the other hand, from Para, pricing level is now at premium of R$21.50/kg level.
Our Take-Away View
Reaching week 44, with Vietnam market cooling down, demand slows down for Brazil with offers remaining firm.
Market remains generally strong despite moments of softness. In fact, it is times like this that should be seen as a potential window of buying opportunity with current supply and new crop expectations that are both not too promising.
© Royal Golden 2021. All Rights Reserved.
Thursday, October 28, 2021
RGT Pepper Market Report Week 43/ 2021
Vietnam after a back-to-back notching record high, mid-week 42 market was seen slowly
reversing its course by about 1-2% from beginning week level trend.
The pricing trend stood flat at level 88000 VND/kg reportedly the earning momentum week.
This have finally urged most shippers to cover their needs particularly for White Pepper
materials.
Though shippers were attempting to bid lower, as usual, no raw material was available for
sale at a low level than the current market supporting price.
Hence, opening week 43, pricing tightens to level 88000-89000 VND with market still in a
sleepy stretch with allegedly scarce availability of raw material.
This week market direction might have taken a reverse turn closing week October,
nevertheless, overall, it can still be seen 4.5% higher average price trend compared to last
month same period, while about 59% gain from last year same month period average
pricing level.
Indonesia
Indonesia remains stable with Lampung staying at level $4350 FOB. The local currency
Rupiah noted as South-east Asia’s best-performing currency since the beginning of
September this year which is influencing country’s local commodities increased pricing.
The problem persists with reported issue in port congestion resulting to tight container and
space availability alongside the reported overwhelming export of coal to China which have
hit record highs.
Brazil
Still one of the best weeks for Brazil
sellers as demand continue to pour in during
the beginning of week 42. Though supportive
levels are available, there are some who are
still very firm with their offers at level $4200-
4300 FOB.
A more aggressive demand is expected
opening week 43 as Europe reopens from
their holiday last week.
Our Take-Away View
Vietnam Pepper elevated pricing these past few
weeks could assimilate the near future event;
taking into consideration the current reported
stock positioning along with farmers bullish bias
perspective that seems noticeably invincible.
However, we should also take note that a smalltime correction will automatically be included
in bull-favored journey.
Freight Market Highlights
Asia to USA Freight Expected to Soften With a
dip in demand for the most expensive
destination ports it remains unclear if rates
will continue to ease down, further reduce or
even increase.
Though carriers continue to
report that demand outlook remains bullish
ending quarter alongside the existing port
congestions.
Asia To Europe Still at All Time High Extremely
critical space condition with rates that
remain at record high level.
Global Ports Facing Intense Congestion Port
of Savannah known as home to the largest
single terminal container facility of its kind in
North America is reportedly at top with 81%
congestion rate, while both LA and Long
Beach had a combined congestion rate of
56%.
Overall, an estimated 77% of ports
globally are experiencing port congestion
heading to holiday season.
© Royal Golden 2021. All Rights Reserved.
Monday, October 18, 2021
Vietnam spices market update 18th Oct 2021 – week 41
•
Pepper price last week increased fast 50 – 100$ at the beginning of the
week. After that correction again when some speculators / dealers sell
stock to take profit. Otherwise some dealers have been selling pepper
stock to make a budget for coffee business when the coffee crop starts
at the beginning of this month. However, prices rose again on the
weekend and were stable at 90.500 – 91.000 vnd raw material.
• Pepper prices have increased by 1% last week and up 10% within the first half October.
• USD has been stable compared with VND.
• Europe and the US have started buying again.
• The Middle East to cover raw material again after a long time by hand to mouth.
•
China's very slow buying continued from the beginning of October
regardless; they only imported 1.293 tons in Sept (normally needing
around 5.000 metric ton per month).
•
Currently, the Central Highlands provinces (key pepper provinces) are
still experiencing heavy rain. Vietnam is in the rainy season, so it is
forecasted that there will be more widespread rains, or tropical
depressions and storms. This will significantly affect the 2022 crop.
•
The 2022 pepper crop is forecasted to continue to decrease quickly
compared to 2021. The crop will also come later because of the
phenomenon of many leaves and pepper trees starting to have flowers. The
main crop forecast of the harvest will be late in February-March 2022.
(Please note; Vietnam Coffee crop has already been delayed 1 month at
least this crop. Now harvesting but very slowly and coffee quantity in
the new crop not much available)
Please see the REPORT FILE & FULL QUOTATION LIST by click to download.
https://drive.google.com/file/d/1yMpoA9rdV59Iz6bkBybQBtCSjWPrh33p/view?usp=sharing
(Please note; market changing fast so price need to update & reconfirmation)
Sincerely Thank you!
Tuesday, October 12, 2021
Mexican Pimento crop 2021- A report by Van der Does
The 2021 hurricane season hit Mexico hard, extreme strong winds as well as flooding and landslides have caused a lot of damage in the growing area of Pimento trees. In Mexico most Pimento trees are wildly grown or in so-called walks, therefore the full impact is hard to calculate yet. Some farmers have reported to have lost their full crop this year.
The effects will probably not be for the short term only. Even when new plantings are done today, it will take some 5 years before a Pimento tree (Pimento dioica) starts producing, it is only full bearing after 20 years. Some spice traders will remember what happened to the nutmeg production from Grenada some 17 years ago and where we are today.
Allspice/Pimento is the only spice that is grown exclusively in the Western Hemisphere. This leaves us with only a few alternatives. Honduras might be a good alternative to the Mexican produce, but the exports are small compared to the amounts Mexico usually exports. The same for exports from Guatemala, these are also limited; an additional disadvantage is that Guatemalan material can hardly be imported by European buyers. Due to the machine drying process in Guatemala most of the times PAH-levels (Polycyclic Aromatic Hydrocarbons) are too high to comply to EU legislation. The last option is material from Jamaica. This material is considered as a premium variety and historically always sold at premium levels.
Clear reports on the current situation and the outlook for this season are still hard to find. We at Van der Does will be monitoring the situation a daily basis. Please contact our brokers if you need further information.
Monday, October 04, 2021
RGT Pepper Market Report Week 40/ 2021
Vietnam – market wrapped up third quarter with this period year ending at a strong note having raw material traded at about 81500 VND/kg with a reported alarmingly low stocks in raw material at origin.
Thus, full September month average is noticeably higher of about 62% from last year same month period, while a full third quarter average have soared of about 58% from last year same period quarter.
Beginning of fourth quarter once again headed to a firm footing with week 40 raw touching at about 83000 VND/kg – highest raw price recorded so far with about 55% increased from beginning year until today.
Shortage of raw materials and unavailability of containers are both throwing everyone out of balance with an earlier report that 2022 crop is projected to be poor causing majority of farmers/dealers to keep and hold their current remaining stock position today.
Indonesia – continued to be inactive with lack of export interest. This does not stop market to remain firm at level $4275 FOB. Situation in ocean freight remains an existing issue as well up until now.
Brazil – in strong demand that boosted price to go up at about 2-3% from last noted price. However, there’s a risk factor involve with the worsening situation in Vitoria port of where majority of order loads are being shipped.
News circulating that MSC carrier has lodged a bid to take over Brazil’s Log-In Logistica Intermodal of which latter is known to have seven (7) feeder box ships in its logistics portfolio.
If the takeover will happen, majority fears freight could increase as MSC is known to offer premium freight prices compared to other carriers.
Container shipping to USA remains uptight heading to last quarter of the year. We have noticed the elusiveness of Baltimore bookings from Vietnam since August month with a reliable source informing that vessel catering to this destination have quenched down to 34 containers. As peak season kicks off, port congestion worsens in China and USA, Daily Breeze reports 70 ships sitting outside the Ports of LA and LB—an estimated 525,000 40-foot containers that need to be unloaded. Though other sources are claiming there are more than double that—waiting off Shanghai and Ningbo in China
Nowadays it is either difficulty in sourcing raw material at origin or shipping it out of origin due to freight booking issues both influencing the current market scenario. Equally a serious exorbitant price must be paid whatever origin market you wish to participate or take a bet on.
© Royal Golden 2021. All Rights Reserved.
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