CLOVES - Decrease of Indonesian clove Exports in 2021

Nov 15, 2021

Decrease of Indonesian clove Exports in 2021 due to high freight costs and less harvest

Clove exporters from Sumatra, Java, Sulawesi reported a sharp decrease in 2021 export, especially in Q4 2021, with an estimated quantity of less than half of over 10,000 MT exported on the corresponding period last year.

Growers and exporters both attributed a lack of buying appetite to unforgiving freight costs combined with less harvest in 2021.

Indonesia 2020 cloves export is estimated to be over 40,000 MT which is much better than in 2019 at around 24,000 MT.

The price for lalpari grade is steady at the moment but predicted to steadily rise in line with the prediction of continuing climate challenges and recovered demands from clove cigarettes

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Written by
Paul Loemaksono

https://www.tridge.com/insights/decrease-of-indonesia-cloves-export-in-2021 

WHATSAPP +5511988027709
MAIL: peppertrade@olcom.com.br

PEPPER CROP & EXPORT 2021

 This information provided by PTEXIM VIETNAM

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

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.

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.

 

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!

Mexican Pimento crop 2021- A report by Van der Does

 

Crop failure, disaster, complete chaos are just a few words that are used by our shippers for Pimento/Allspice from Mexico to describe the current situation.


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.