UNITED SPICE CO. LTD

Pepper Market Review Week 49 2018

    Black Pepper prices from all origins started to ease off with shorts covering their positions and new orders were not shown from importing countries in view of upcoming new crop from Southern Brazil and Vietnam .Although Brazil seems to be sold out for January shipments enticing bids are taken by some sellers for January besides February . Asia was a dominating buyer of Brazil pepper for the last quarter of 2018 predominantly Vietnam with prices some 750 US$ below Vietnam and Indonesia
    Vietnam exporters were amassing their positions as they feel there is nothing to loose in buying Brazil Asta in the range of 2300-2400 pmt cif Vietnamese ports although it will arrive only in March and April 2019 in the shores of Vietnam.

    Vietnam prices started to cool off with exporters sidelined after paying the heavy penalty for underselling the market in August following footsteps of Brazil . its reported top most exporters of Vietnam Whole  Black Pepper have lost billions of Vietnams Dongs in fulfilling  their obligations to their overseas
    Buyers .We expect the speculative sales to commence soon as the risk appetite seems to be very high with Origin Shippers who will do anything to maintain their rankings in spite of bleeding heavily . Vasta was quoted USD 2750 FOB for January shipment and reportedly February through June string shipments was available with bids at USD 2500 FOB from exporters who owns BASTA positions which will be rechristened and shipped as VASTA.Importers who do not like BASTA double check Origin before concluding deals. November and December  exports from Vietnam is likely to be lean and by end of the year Vietnam Pepper exports are pegged at 232000 Mt comprises of Carry over stocks, imports from other origins and Cambodians Laos Pepper which are shipped as Vietnamese Pepper . Majority of exporters feel crop of 2019 will be similar to that of 2018 and not the bumper numbers forecasted by multinationals and some domestic companies

    Indian Pepper prices also eased during the week with sentiments changing as the new crop is likely to hit the market pretty soon .Indian MG1 prices at close of the week was quoted at USD 5250 FOB Cochin

    Indonesia occasionally shows up with enticing  bids for Lasta specific users as the crop is held by speculators and local collectors who believe in a firmer market in the coming days

    Markets are likely to remain very quiet normally from December 10 th to January 5 th usually on account of Christmas and New Year Holidays .Watch our for aggressive prices from some Vietnamese shippers and make use of it if it suits your requirements

UNITED SPICE CO. LTD

Add: Lot D, D2& N2 Str., Nam Tan Uyen Industrial Zone, Tan Uyen District, Binh Duong Province, Vietnam 
Tel: (+84 650) 365 3719 / (+84 650) 365 3721 
Fax: (+84 650) 365 3718