Bullish Chinese Garlic

 25 April 2023

In the last two weeks, the market for dehydrated garlic from China has seen a significant increase in demand. This surge in demand is primarily due to a combination of speculation and a new crop outlook, which suggests a 15-20% decrease in yield.

Dehydrated garlic is a popular ingredient in many dishes, including soups, stews, and sauces. It is also a common ingredient in many processed foods, such as snack foods and seasonings. China is the world's largest producer of dehydrated garlic, and as a result, any changes in the country's garlic crop can have a significant impact on the global market.

 

The recent increase in demand for dehydrated garlic from China can be attributed to speculation. Traders and buyers are anticipating that the decrease in yield will lead to a shortage of garlic, which will drive up prices. As a result, many are rushing to purchase dehydrated garlic from China in order to secure their supply and avoid potential price increases.

 

In conclusion, the recent increase in demand for dehydrated garlic from China can be attributed to a combination of speculation and a new crop outlook. While the decrease in yield is concerning, it is important to remember that the market is constantly evolving, and new factors can come into play at any time. Therefore, it is crucial for industry participants to remain vigilant and flexible in order to navigate these changes successfully.

 

Contact us for offers for prompt shipments as well as new crop 2023/2024.

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PINK PEPPER HARVEST START END OF MAY
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Vietnam Pepper market update 24th April 2023 – Week 16.

April 24, 2023

- Last week, pepper price increased from 66,500 - 68,500 VND, equivalent to an increase of 3%.

- Demand has returned from the main market, China, besides the US and Europe.

Pepper prices lost week had an impressive increase when China continued to increase purchases  , in addition  to demand  from the US and EU markets.
Besides, exporters also actively buy   raw   materials  to  replenish inventories . Therefore, last week, the amount of raw materials offered on the market was quite small as farmers and agents expect pepper prices to increase in the near future.

According to the preliminary data report  of  the Customs, exports in the  first  17  days  of  April  2023 reached 14,464 tons of pepper, with a turnover of 43.91 million  USD,  bringing  the  export  of  the  first  3.5  months of the year to reached 89,795 tons, up 39.27% in volume and 8.59% in value over the same period last year. The average export price of pepper in the period reached  3,048 USD/ton,  up  2.35%  compared  to  the  average export price of Ma rch  2023.  Thus,  it  is  likeIy  that  April will export 25-30,000 tons, bringing the  total  export volume in 4 months to 102-107,000 tons. (In the first 4 months of 2022, only 79,410 tons were exported).

According to the update from the International Pepper Association (IPC), world pepper prices are as follows:

INDIA
Pepper prices in India have fallen slightly in the past week.

SRI LANKA
Pepper prices remained stable.

INDONESIA
• The price of Lampung black pepper in Indonesia is almost unchanged.
• Price of Muntok white pepper at 6,002 USD/ton.

BRAZIL
Pepper prices last week tended to increase. Very few raw material ore offered for sale in the market as farmers and dealers focus their resources on the coffee crop.

MALAYSIA
Malaysia's Kuching ASTA black pepper price remained stable at $4,900/ton; while white pepper is still at $7,300/ton.

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INDICATIVE FOB PRICES FOR THE WEEK APRIL 24,  2023

PINHEAD

PINHEAD 1MM  SUPERCLEANED $1.003

PINHEAD1.5MM -2MM  CLEANED $1.227

PINHEAD 2MM -2.5MM CLEANED $1.446

PINHEAD  SUPERIOR   QUALITY $1.666

WHOLE

VBP 500 G/L FAQ $3.083

VBP 550 G/L FAQ $3.322

VBP 500 G/L Double Spiral Cleaned $3.367

VBP 550 G/L Double Spiral Cleaned $3.427

VBP 570 G/L Double ASTA $3.487

STEAM STERILIZED PEPPER

Steam Sterilized Pepper 500G/L $3.583

Steam Sterilized Pepper 550G/L $3.705

Steam Sterilized Pepper 570G/L $3.766

STEAM STERILIZED PEPPER - EU COMPLIANCE

Steam Sterilized Pepper 500G/L $ 3.763 

Steam Sterilized Pepper 550G/L $ 3. 885

Steam Sterilized Pepper 570G/L $ 3,946

Steam Sterilized Pepper SMM $ 4. 024

Steam Sterilized White Pepper 630G/L $5.505

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JUST A REMINDER
PINK PEPPER HARVEST START END OF MAY
BEST QUALITY PRODUCT ARE ALWAYS AT THE BEGINNING.
CALL US IN ORDER TO ASSURE YOURS !

Vietnam Pepper market Monthly Report March 2023

APRIL 17 2023

MARCH 2023 PEPPER EXPORTS

According to preliminary statistics of VPA, in March 2023, Vietnam exported 35,913 tons of pepper, 32,912 tons of black pepper, 3,001 tons of white pepper. Total export turnover reached 107.2 million USD, black pepper reached 93.6 million USD, white pepper reached 13.6 million USD, compared to the previous month, the export volume increased by 27.5%. The average export price of black pepper in March was U$ 3,454;Ton white pepper was U$ 4,841/ton, compared to previous month the price of black pepper increasedby 5,5% and the white pepper decrease by 15,9&

Exports to China in March reached 15,710 tons, this is the highest export volume ever in a month, breaking the highest export record of April 2020 at 11,953 tons, compared to February export volume to China increased by 85.2%. March also recorded an increase in exports to traditional markets such as the United States, Germany, the Netherlands, India, Egypt, France, Russia, Canada, and Spain,  Saudi Arabia and Turkey increased. The United Kingdom decreased compared to February 2023.

EXPORTING PEPPER FROM JAN TO MAR 2023

Progressively from January 1 to the end of March 2023, Vietnam exported 76,727 tons, of which black pepper reached 70,222 tons, white pepper reached 6,505 tons. 

Total export turnover reached 235.9 million USO, black pepper reached 205.4 million USO, white pepper reached 30.5 million USO. 

Compared to the same period last year, the export volume increased by 40.5% or 22,112 tons, however, the export turnover decreased by 7.3% or 18.5 million USO.

Exports in the first 3 months to China reached 25,919 tons compared to 2,138 tons in the same period, a sudden increase in exports can be understood as China buying to make up for the shortage of goods after 3 years of closure because of Covid-19. In contrast to the Chinese market, exports to the United States, Germany, the Netherlands, the United Kingdom, and India decreased. 

The reason may be due to the economic crisis, so the markets limit purchases. Some other markets recorded an increase in exports such as Iran up 461%; Turkey increased by 331.3%; Egypt by 218.4%; Senegal increased by 148.8%... 

The leading import markets of white pepper: Germany, the United States, China, the Netherlands

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#2023 pepper crop,#black pepper #pepper price,#April pepper price,#vietnam pepper price

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JUST A REMINDER
PINK PEPPER HARVEST START END OF MAY
BEST QUALITY PRODUCT ARE ALWAYS AT THE BEGINNING.
CALL US IN ORDER TO ASSURE YOURS !

Vietnam Pepper market update April 3rd 2023 – Week 13 - Prices

We would like to send you a quick highlight spices market update 3rd April 2023 – Week 13.

Last week, the pepper market was quite stable and the trading volume on the market was not much. Now that the crop has been harvested, farmers/dealers continue to stock up and do not offer to sell when the pepper price is adjusted down. 

Importers have increased their purchases with faraway orders in the third and fourth quarters of 2023 but manufacturers and exporters are very cautious and offer little to sell long-distance orders as many experts forecast an upward trend in next time. 

According to preliminary statistics, Vietnam's pepper exports in March are forecast to reach over 36,000 tons In which China imported  over 14,000  tons 

This  broughtn Vietnam's total pepper export volume in 3 months to over 76,000 tons, up 40% compared to the first 3 months of 2022 (54,615 tons) and increased 23% compared to the first 3 months of 2021 (61,584 tons)

 According to the update from the International Pepper Association (IPC) on March 30 (local time), the world pepper price compared to March 29 is as follows:

INDIA

The price of pepper is almost unchanged

INDONESIA

Lampung black pepper (Indonesia): at 3,643 US/ton, up 0.22%.

Muntok white pepper: at $6,141/ton, up 0.21%.

BRAZIL

Pepper prices increased slightly due to strong demand from different markets. The Brazilian real currency is getting stronger against US which makes pepper more expensive when converted to US

MALAYSIA

Kuching black pepper (Malaysia) ASTA: at $4,900/ton, unchanged 

Malaysian white pepper ASTA: at $7,300/ton, unchanged

PEPPER PRICE INDICATION FOB HCMC 

REGULAR PEPPER

PINHEAD 1.5MM • 2MM CLEANED $1. 227

PINHEAD 2MM - 2.5MM CLEANED $1.446

PINHEAD SUPERIOR QUALITY $1.666

VBP 550 G/L FAQ $3.246

VBP 500 G/L Double Spiral Cleaned $3.319

VBP 550 Gil Double Spiral Cleaned $3.378

VBP 570 G/L Double ASTA $3.438

VBP 5MM Jumbo Size $3.540

White PEPPER 630 G/L DW $4.874

White PEPPER 630 G/LASTA $4.918

STEAM STERILIZED PINHEAD PEPPER

Steam Sterilized Pinhead < 1MM $1.453

Steam Sterilized Pinhead Super Quality $2.116

STEAM STERILIZED LIGHT BERRIES PEPPER

Steam Sterilized Black Pepper 250 G/L $3.218

Steam Sterilized Black Pepper 300 G/L $3.265

Steam Sterilized Black Pepper 350 G/L $3.312

STEAM STERILIZED PEPPER - EU COMPLIANCE

Steam Sterilized Pepper 500G/L $3.715

Steam Sterilized Pepper 550G/L $3.835

Steam Sterilized Pepper 570G/L $3.895

Steam Sterilized Pepper SMM $3.972

 Steam Sterilized White Pepper 630G/L $5.459

Vietnam Pepper market update 27th March 2023 – Week 12 and Prices

 We would like to send you a quick highlight spices market update 27th March 2023 – Week 12.

Last week, pepper price decreased slightly by 0.8% when demand was quite slow from different markets such as China / EU / USA / AFRICA…

The market last week pepper prices were less volatile when demand was quiet in the largest market, China.

Other markets such as the US / EU / ASIA ... have been interested in more orders for delivery in full year shipment 2023 than before. However, export manufacturers in Vietnam are very cautious and almost only offer spot orders.

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 Indication price PEPPER,  based on NET FOB HCM as follows

PINHEAD < 1MM SUPER CLEANED $1.146

PINHEAD 1.5MM - 2MM CLEANED $1.446 

PINHEAD 2MM - 2.5MM CLEANED $1.754 

PINHEAD SUPERIOR QUALITY $2.106 

BPEPPER 500 G/L FAQ $3.039

BPEPPER 550 G/L FAQ $3.246 

BPEPPER 500 G/L Double Spiral Cleaned $3.319 

BPEPPER 550 G/L Double Spiral Cleaned $3.378 

BPEPPER 570 G/L Double ASTA $3.438 

BPEPPER 5MM Jumbo Size $3.540 

White PEPPER 630 G/L DW $4.918 

White PEPPER 630 G/LASTA $4.962 

Pepper price in 2023 - UP or DOWN ?

The question of the moment is the Price
All the people involved in spice trading  or even need to know what is this year trend for Pepper.
We just got a report from one of biggest world spice trade players whose point of view may bring some answers.

Market will remain at pricing level for raw material between 62,000-67,000 VND/kg from Q1-Q2 and will slowly move upward into 75,000-80,000 VND/kg by Q3-Q4.

We suspect prices we are seeing this year will be the lowest. Next four (4) years cycle might lean into an upward trend from the current levels.

Pepper price hit a 10% increase in pricing since the beginning of this year. 
Lowest level was seen at 59,000 VND during January month and had crossed over the highs of 69-70,000 VND marked during February month.

Overall, we see indications suggesting bulls having a strong advantage over bears

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The Bearish Indicators

• Higher interest rates means higher storage cost which tampers buying power.

• Brazil crop news will probably be a decisive moment. If crop is big, it will supply Vietnam and rest of the world.

• Economic situation worldwide is not satisfactory which may reduce imports.

• Various countries encountering devaluation of their currencies and shortage of dollars causing a eduction in imports. 

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The Bullish Indicators

• Vietnam had already finished harvesting 80% of its yield and still no hint of selling pressure from farmers’ side.

• The new crop arrival in the warehouses were very limited during the peak arrival season.

• Chinese is actively buying and will remain active until June 2023.

• The first two (2) months of the year, Vietnam have already exported about 42,000 tons. March export is expected to reach about 30,000 tons. By first half of 2023, big volume will be exported, and emaining quantity will be in strong hands.

• Exporters are not keen to offer forward positions.

• Exporters feel that the levels we are seeing now will be the lowest; therefore, not to go short will be an advantage.

• Farmers are holding their pepper goods due to the advantage of coffee and other fruits high prices income.

• Both stock market and real estate property are not doing well, causing most buyers to invest in commodities.

• Buyers’ coverage beyond June is limited; demand recovery is to be expected during Q3 and Q4.

• Pepper plantation areas is decreasing annually while proper caring for pepper vines is neglected.

• Farming input cost significantly increased which translates to higher production cost.

• Climate change is also worsening the vulnerability of farmers.

• Considering the small pricing differences between Brazil and of Vietnam, companies based in Hochiminh will probably focus on Vietnamese Pepper especially now that Sundried material is not easily available until August month.

• Early reports indicating Indonesian next crop will be small.

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Pepper Talk: Bullish Bearish Analysis by Royal Golden © Royal Golden 2023. All Rights Reserved.

Vietnam Pepper market update 20th March 2023 – Week 11

  

Last week, the global financial market received bad news such as the bankruptcy of 3 major banks in the world & bad news from Credit Suisse. However, the pepper market was almost unaffected by this information and continued to increase in price last week with an increase of 2.2%.

Demand continues to increase from the Chinese market and improvement from major markets from the US and EU have made the market more active.
Much information shows that it is likely that in March, Vietnam will export at least 30,000 tons, bringing the total export volume to at least 70,000 tons within the first 3 months. (The above export data does not include statistical data through unofficial trade, corresponding to 10 - 15,000 tons. If so, the export volume will be increased to approximately 85,000 tons). This is an impressive number when the 2023 crop is forecasted to only reach approximately 180,000-200,000 tons.