Pepper Market Review Week 46 2018

    Global Pepper prices closed weaker from Brazil during the week as exporters from that Origin started short sales for December/January/February shipments anticipating a good crop from South of Brazil which is expected to hit the market in the coming weeks .

    Brazil exported 48000 mts during January to October 2018 a new record in their export History

    Vietnam prices which was showing a softer tone in the beginning of the week moved higher from mid week with short covering by exporters and renewed buying from China .China is emerging as a major importer after United States of America accounting for 15% of Vietnam exports through customs frontiers. Compared to their exports in January to October period in 2016 ( 8156 )mts  and 2017 ( 10621 ) mts their imports grew manifold to 31658 mts during the current year and stood next to USA with 38068 mts .

    Vietnam exported 210280 mts during January to October 2018 with Black Pepper accounting for 187101 mts and White Pepper 23180 mts .Supplies continued tight as balance crop is in the hands of very strong hands and looking st the pattern of exports another 25000 mts exports are likely to happen from that origin.

    Indian prices continued to remain steady/firm with higher density material from the farm fetching USD 350 pmt higher than the bench marked 550 gl pepper. Since winter is approaching domestic consumption is likely to increase in the coming weeks prices are likely to remain firm as the harvest prospects of 2019 loom large with the floods in September

    Indonesia was not a keen seller but was willing to listen to bids closer to Vietnam levels as the only origin one can look at for pesticides compliant pepper

    We recommend to keep coverage for near term needs as spot stock position in both USA and Europe are very thin as importers abstain from buying as the new crop from Vietnam is only 8 weeks away and buyers believe they can buy cheaper for positions beginning from February


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