Market update

  • 14 October 2019 Open or Close

    Again nothing much to say about the pepper market. Abundant goods available and prices fluctuating in a narrow range. From information we got from various sources we distilled the following about the coming Vietnam crop :

    • Growing conditions in Daklak and Daknong (accounting for 50 % of the pepper cultivation) are good with output expected to rise by 10 %. 
    • Cultivation in provinces close to Ho Chi Minh (Dong Nai, Ba Ria Vung Tau (25%)) is expected to come down with around 20 % due to sharp increase of land prices.
    • The acreage in Bin Phuoc province (abt 10 %) is unchanged but farmers have less focus on pepper
    • Production in Gia Lai (10%) is down sharply due to inexperience of the farmers resulting in plant diseases
    • Balance 5 % is coming from a number of smaller areas and will be more or less the same
    • Due to low prices farmers are using much less fertilizer and pesticides !   

    Cardamom : little rain during the summer affected the flowering of cardamom in Guatemala resulting in a late and probably small(er) crop. new crop prices start at a high level. The same applies to  (mexican) pimento with an anticipated crop around 50 % smaller than normal. (possibly there is some carry over of pimento from previous year tempering the price a little).

    China paprika prices are said to be firm due to strong demand from  extraction industry. Chilli prices are also firm.

    Garlic prices tend somewhat easier now that the market realises that there are still good stocks of previous cropyears available.

  • 19 September 2019 Open or Close

    In the past week pepper prices came down with 1 to 2 %. Vietnam pepper export to China dropped significantly (from around 5000 m/t in July to just 1300 m/t in August) due to a tightening of the border.  Some cargo that was on the way to China was sent back causing some selling pressure. Taking into account that both Brazil and Vietnam still have substantial stocks left we remain bearish.

    Pimento and Cardamom ex Central America: Origin exporters are reluctant to make offers, the crops are said to be delayed and production is said to have been affected by poor weather. The sentiment is firm.

    Nutmeg and mace: Mace prices remain very high fueled by Indian import of Indonesian origin product. Limited availability and good demand are supporting the price. So far nutmeg prices have been stable. New crop material will be available by December 2019 - January 2020. It is too early to make bold statements about crop size and market direction.

    Cassia prices remain firm. Indonesia crop is clearly smaller and collection is hindered by forest fires and smoke in the growing areas. prices gradually move up further.

  • 11 September 2019 Open or Close

    The pepper harvest in Brazil (Para) and Indonesia is halfway. Both origins report a good crop sizes. causing pepper prices to come down a little more. The current level for Brasil B.1 as well as for Vietnam 500gr/l FAQ is slightly below usd 2000/t FOB. Obviously cleaned and / or sterilised pepper comes at a premium.

    Lower origin prices result in lower SPOT prices! Please contact us for an indicication. 

    When you consider to cover your demand for a longer period let us know so. We are ready to make you a competitive proposal.

  • 15 August 2019 Open or Close

    Vietnam pepper prices move sideways within a very narrow price range. Brazil B.1 / ASTA prices look attractive around USD 2050/t FOB.

    Mexican pimento crop has started. After initially indicating prices around usd 2600/t CF now offers are withdrawn. Crop is somewhat delayed and presumably is smaller than last year.

    The availability of nutmeg in Europe and producing countries is limited hence market is expected to move up. As for ginger it will take another 5 months before the new crop Nigeria will become available (and crop is anticipated to be smaller than last year). EU-eligible material is not available for shipment anymore and spot market is tight. Here also we foresee a firming market in the months ahead.

    Cloves prices bounced back a little from previous lows. Comoros not offering and Madagascar crop not started yet.

    New 2019 European seed crops are available and look attractive. Full truckloads mustardseed, coreanderseed come at (lower) attractive prices. Carawayseed prices seem slightly higher than the previous year.

    The new crop poppyseed is available shortly. A starting price around EUR 2,50/kg seems feasible (basis full truck loads).

    Economic and political unrest cause stock markets to correct downwards. We witness a strong dollar against origin currencies.

  • 3 July 2019 Open or Close

    The European spot market remains quiet, prices for most products are more or less unchanged. Worldwide there is abundant pepper and right now we see no reason why prices should improve short term.

    Clove prices have come down gradually during  the past months. Instead of importing, Indonesia now seems active as an exporter thus putting pressure on other origins. 

    New crops of coreander and poppyseed are getting close and we anticipate lower prices for these products in August.

    Garlic prices (powder / granules / flakes) have stabilized. There is a good carry over of old crop material. For light color 2019 crop material buyers should be prepared to pay a premium of minimum 25 %. The new crop is abt 30% smaller than in previous years and farmers hold on to their stocks expecting to get better prices in August. Until that changes prices for light color material will remain (much) higher.

  • 30 May 2019 Open or Close

    Vietnamese pepper exports are continuing at a high level and are likely to reach a staggering 140K mt by the end of May. All major destinations contributed and imported more than in previous years.In particular, pepper exports to China rose sharply, making it the largest importer to date in 2019. Part of this Chinese import is speculative and we understand that inventory levels are rising. Nevertheless, the Chinese potential in terms of finance, storage capacity and consumption is huge and if it continues to buy, the existing theories and predictions of the pepper market may need to be adjusted. We currently see no reason why pepper prices should fall further.

    The US$ exchange rate keeps moving sideways in between 1.11 and 1.12 against the EURO.

  • 17 May 2019 Open or Close

    During the past few weeks we have seen a fairly active market. The prices for the various types of pepper stayed within a very narrow range for several months now. We anticipate that this will continue in the months ahead.

    Market prices of dried onions of various origins have risen considerably but now seem to be stabilize at established higher levels.

    Prices for Chinese dried garlic are rather volatile at the moment. There is a decent carry over of 2017 / 2018 crop material but the 2019 crop is anticipated to be around 20 % smaller. In our opinion, there is no real shortage but for now prices are firming.

    The daily news is dominated by geopolitics and the political climate looks restless. The dollar exchange rate is not concerned by this and moves sideways around a level 1.12 (to the €)

  • 25 April 2019 Open or Close

    The pepper market remains firm. The availability of Brasilian black pepper is limited and prices are now around usd 2350 per m/t FOB. This is also known to farmers in Vietnam and there, too, slightly higher prices are demanded. During the first 3 months of this year, Vietnam exported 72,000 m/t pepper. 60% of this went to destinations in Asia, 20% to North America and 15% to Europe. Exports increased by around 20% compared to 2018.

    Prices for consumption seeds from India (sharply) increased in the past month. We understand that the crops of fenugreek, nigella and cumin seeds, among others, are substantially smaller. South India is suffering from a shortage of precipitation and cardamom prices set new records.

    Oil prices have risen by 10% in a month, apart from that the dollar exchange rate remains high. Could this be the start of rising inflation or a slowing economy ?

  • 10 April 2019 Open or Close

    During the past weeks pepper prices moved sideways as anticipated. Only the prices from Brazil are a little up but we feel this is temporarily. Arrivals from Esperito Santo are getting less and the harvest in Para will only start late July. Demand from China for Vietnam pepper seems to slow down a little.

    Prices of dehydrated onions from India are about 35 % higher than last year. Information about the cropsize is still a bit diffuse but likely it is smaller by some 20 to 30 % compared to 2018. We anticipate prices to remain firm during 2019.

    After strongly increasing prices of garlic early 2019 China prices now show a technical correction and have come down a little. Exporters and speculators follow the pending crop, that is due in May, closely.

    In recent days the USD is a little weaker to the EURO. Todays exchange rate stands at 1.1275 Attached our price list – prices are strictly subject to our final confirmation.

  • 8 March 2019 Open or Close

    Pepper prices are slightly higher than 2 weeks ago. Vietnam origin currently determines the market with its 2019 crop well in progress. Good demand from Asian countries, including China, is supporting the current price levels.

    We believe that pepper prices will continue to move in a narrow range during 2019. 

    The prices for dried garlic have recently increased sharply. Due to low prices in 2018 less garlic is planted and a 30% smaller crop is expected. The prices of fresh garlic have increased by about usd 150 per mt. Let's apply a drying factor of about 4 to that, then that comes down to the price increase for dehydrated garlic of usd 600 per mt.

    This week the ECB announced continued support to the European financial system, which pushed the EURO exchange rate a little down.


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