Brazil Pepper Pricing Overview Week 37

 

Plantation in São Mateus, Espirito Santo

Brazil remains stable and firm; expected to slowly
move at upward trend. Still seeing difficulties in 
securing raw material from farmers especially for 
sundried materials. 

Brazil Pepper Crop Situation
Another El Nino induced drought affecting mostly 
Para region with reports of dying plants and crop 
failures reversing the earlier projected good yield. 
Sundried materials are expected to be more limited 
with prices that could further move at an upward 
trend. 

Brazil Pepper August Export 
Brazil managed to export 5,113 tons of pepper for the 
month of August, generating about 50,408 tons for 
the first eight (8) months of the year. The volume is 
lower by a 2% margin only from last year’s export 
volume for same period. 

For the first eight (8) months of this year, the highest 
importer of Brazil Pepper is still Vietnam, able to 
import 9,437 tons, followed by Senegal with 4,820
tons, UAE at 4,789 tons, Morocco at 4,375 tons, India 
at 3,830 tons and Pakistan at 3,484 tons.

RGT Pepper Market Report – Week 37 /2023 
Royal Golden Trading 2023. All Rights Reserved.

Vietnam Pepper market update 4th Sept 2023 – Week 35.

Over the past week, black pepper prices have slightly increased by about  1,5% from 73,000 - 74,000.

The largest market, China, has resumed purchasing along with demand from Europe/USA for Q4 deliveries.

The average export price of Vietnamese pepper in August increased for the third consecutive month and reached the highest level in the past 10 months reaching U$ 3,748 an increase of 5% compared to the month of July.

According to the latest data from the *General Statistics Office*, Vietnam-s pepper exports in August reached 16,009 tons, an increase of 4,9% compared to July, but a decrease of 13,4% compared to the same period last year.

Export turnover in August reached 60.01 million U$D, a 5.4% increase compared to July, but a 20.2% decrease compared to the same period last year.

In the first 8 month of 2023, Vietnam´s pepper exports reached 183,919 tons.,a 14.5% increase compared to the same period in 2022

Price indication for the week 35

Upturn in Indonesian cloves price reflects global firmness

 

INTERNATIONAL cloves prices have held mostly firm in recent weeks as farmers at origin remain reluctant to lower their pricing ambitions and exporters appear confident of maintaining demand at high levels.

Indonesian cloves prices had moved particularly high, being above $10,000 a tonne cif.

“Our agent in Surabaya says that now that the crop is almost done, stocks are in the hand of farmers and they are not ready to give cloves at low prices especially knowing that kretek manufacturers are on the market looking forward to receiving what they have ordered already,” he said.

Mr Nee added that contrary to buyers’ hopes for lower prices, Indonesian farmers were speculating and pushing traders to pay a higher price on a daily basis. “They all know that the crop is sold to industries already and also that the next crop could be much lower than this one due to very dry weather in Indonesia when cloves (stems) should be starting to come on trees,” he remarked.

Hence, Mr Nee said he was not overly confident of the possibility for a price decrease.

Gregoire Courme, head of the spice trade department at Herbs International Service, commented: “The prices are still high, because the Indonesian market is firmer after the Ramadan. The current prices are between $10,500 to $11,000 a tonne fob.”

Mr Courme added that some local traders had sold short at levels of around $8,500 a tonne to cigarette firms before Ramadan, anticipating a fall during the festival. “Unfortunately the farmers did not deliver the goods and the cigarette manufacturers put the pressure on the sellers to get their contracts. So the local market is high now and the traders are running the market to find cloves. Moreover, the latest figures show that the crop is from 60,000 to 70,000 tonnes and not above 80,000 tonnes as initially predicted,” he said.

Mr Nee explained that in Comoros a lot of buyers had been visiting from Pakistan, the Middle East and China. These individuals would purchase “one or two boxes” of cloves and then leave the country, leaving scope for others to visit and take similar coverage.

Currently there were at least 16 buyers in Mutsamudu compared with only four recently. “Over this, the crop is much shorter than expected, maybe only 2,000 tonnes,” Mr Nee said.

As a result, Comoros cloves prices looked unlikely to decrease and the domestic market was holding firm.

Mr Nee said Comoros was offering at $9,400 a tonne cif Singapore, $9,950 a tonne cif US and €7,750 ($9,748) a tonne cif main European ports.

Mr Courme said that he could not find any sellers of Comoros cloves offering competitive prices.

He added that in Madagascar old crop prices had decreased a little bit since the end of July and were now around $9,700 a tonne c&f Europe.

Mr Nee viewed Madagascar old crop offers as still being “rather high” and he was advising extra care in making sure purchases were of a suitable quality.

The country has been pegged to have a favourable 2012 crop of between 8,000 and 9,000 tonnes. Harvesting was expected to start in mid-October for shipment in November.

Mr Nee said that as yet there was no idea of what the opening prices would be, but based on current offers it was doubtful there would be a large cut in Madagascar cloves prices ahead, he claimed.

Contacts in Brazil had indicated they were expecting new crop prices in the South American country to open around $9 and $10 a kg fob.

https://www.spicefactors.com/upturn-in-indonesian-cloves-price-reflects-global-firmness/

The various changes of Brazilian Black Pepper Trade

For the second year in a row Vietnam became the biggest importer of brazilian black pepper, overcoming traditional destinations like USA and also Germany.

USA has been the leading importer of brazilian black pepper since the beginning of the century.

Big changes happened after COVID-19 pandemia and actually during the last 10 years, starting with the production area in Brazil that developed a new very active production zone in the central-east (south of Bahia state and Espirito Santo state).Brazilian exports that were around 30k - 40 k tons per year from 2000 to 2015, rised to 91,000 ton in 2021.

Prices this week range between 3350 -3500 FOB.

The chart below show Brazilian Exports per destination from 2018 to 2023 elaborated by Coreimex. 

Prices this week range between 3350 -3500 FOB

If interested ask for a firm offer  peppertrade@olcom.com.br

Vietnam pepper market update 28th August 2023 – Week 34

  

August 28, 2023
Likely that Vietnam's pepper exports in the first 8 months of the year will reach around 183-185,000 tons. If the forecasted annual pepper production for 2023 is around 190-200,000 tons, it is certain that the inventory from previous years will be used for exports until the next harvest in 2024, which is still 5-6 months away.

It is predicted that this situation will lead to a less pepper raw material trading in the market in the fourth quarter, as the inventory from previous years is still held by farmers, traders, and export companies with a strong financial foundation and relatively high prices.

 

Please see the REPORT FILE & FULL QUOTATION LIST by click to download.

 

https://drive.google.com/file/d/1Fw1NvO3DkoV2i_JwHFhPaXJOi9iEkLDX/view?usp=sharing

 

PEPPER MARKET IN VIETNA, 24-Aug-2023

 

- In coming time, world pepper market will increase due to reduced supply (low price, low yield due to many old trees, reduced interest in farming due to other more efficient crops such as durian, weather influence, domestic consumption), increased demand from US and China (improved logistics, facilitating trade and transporation, China’s pepper import from Vietnam increased nearly 7 times from Jan-Jul/23 over same period in 2022).

- Currently there is not much supply in Vietnam. The current inventory is about 60-80k tons, next harvest is expected to be 140-150k tons, a significant decrease compared to last year. Indonesia, pepper in 2022 is down 22% compared to 2021, is expected to continue to decrease by 15% in 2023. In India, the main pepper growing areas are affected by weather, causing production to decrease 30-32% while domestic demand increases dramatically as the festival season approaches.

- Demand is likely to exceed supply, pushing prices up to unprecedented heights.

If you have any interest of pepper or other agricultural products, pls comment to send you our best price. Mr Vo - TPH

Scanty rainfall hits cardamom production, prices set to spiral to record levels

 

As prices of cardamom rise, India is in danger of losing its export markets to the cheaper Guatemalan cardamom. Even the upcoming festive season may not help its cause as higher prices may impact the price-sensitive domestic market as well.

AUGUST 16, 2023

Cardamom prices are spiraling to record levels as severely deficient rainfall wreaks havoc in Idukki district in Kerala, where most of the country’s cardamom is grown.

The average prices have doubled to around Rs 2,000 per kg from a couple of months ago. The maximum price for the premium quality has jumped to about Rs 3,000 per kg. It is reminiscent of the situation four years ago when average prices crossed Rs 4,000 per kg and the maximum price escalated to Rs 7,000 per kg when the south-west monsoon rains played truant.

Rainfall is said to be short by 30 to 50 percent so far in different parts of Idukki district, the hub of cardamom cultivation. ``The harvest began towards the end of last month and the production looks to be 30 to 40 percent short because of poor rainfall from June. If it rains towards the end of this month or in September, we may get some good crop by December, but the current damage cannot be set right,’’ said K K Saseendra Babu, MD of Vandanmedu Green Gold Cardamom Producer Co. Ltd.

He reckons that the total cardamom production in the country could drop to around 15,000 tonnes from 25,000 tonnes last year. Lower carryover stock has also contributed to the price rally.

At present consumption is weak and given the current prices it remains to be seen whether it will pick up with the onset of festival season after September. The maximum domestic sale usually happens during the Durga pooja-Diwali season. Subdued demand may limit the rise of cardamom prices till the festival season begins.

`The pattern of consumption has changed after the Covid pandemic. The market has become price sensitive, and the demand is for cheaper, lower quality cardamom. The total annual domestic consumption could have fallen to 25,000 tonnes from around 35,000 tonnes,’’ Babu said.

Though the prices are at remunerative levels for the growers, they cannot take advantage of it as most of them are left with hardly any stock. Since the prices hit record levels in 2019, cardamom cultivation has spread to more areas in Idukki district as well as in Tamil Nadu. The curry masala makers, who go for bulk quantities, bought some quantity when it was cheaper.

In the last three years cardamom prices have been averaging around Rs 1,000 per kg. Given the rise in the production cost, the growers can reap benefits only if the prices go above Rs 1,200 per kg.

``Apart from the decline in consumption there is also the risk of Guatemalan cardamom entering the Indian market towards the end of the year, which could impact domestic prices’’ pointed out P C Punnoose, CEO of Kerala Cardamom Processing & Marketing Co. Ltd. Gautemala is the biggest cardamom producer in the world and last year the country’s production was higher at around 45,000 tonnes, which helped it to dominate the export market.

Guatemalan harvest usually begins around October.

India’s export of cardamom too declined last year owing to the onslaught of Guatemalan cardamom. Cardamom exports in 2022-23 showed a 30 percent slump in quantity to 7,352 tonnes and a 36 percent drop in earnings year-on-year to Rs 875 crore. In 2021-22, cardamom export had reached a new peak of 10,572 tonnes valued at Rs 1,375 crore.

Importers in Kuwait and Saudi Arabia are asking why India has suddenly increased the price. The prices are around $ 31 per kg. Even at $19 per kg earlier, we were not finding too many takers in the world market,’’ said Nithyanandan, partner of SPG Ramaswamy Nadar and Sons, a leading exporter.

Once Guatemala enters the world market after October, it will be able to sell at a cheaper rate than India. Thus, India could end up losing the Gulf market, the largest buyers of cardamom, to Guatemala.

Further, failure of monsoon rains could push cardamom prices to a higher level, hitting both domestic consumption and export.

PK KRISHNAKUMAR is a journalist based in Kochi.

https://www.moneycontrol.com/news/economy/agriculture/scanty-rainfall-hits-cardamom-production-prices-set-to-spiral-to-record-levels-11197301.html