Global Pepper Mart Sink as new crop harvest in Brazil and Indonesia gains momentum

Subdued demands from western markets as well as Asian and African markets coupled with new crop harvest in Brazil and Indonesia gaining momentum prices started moving south during the week. Lack of demand from across the Globe is putting pressure on Vietnam where at close of week price was down by 5000  dongs per Kilo compared to previous week. Although locals still expect Chinese  to be back in the market soon but a Chinese trader whom I met last week in Daklak at a collectors warehouse picking up a container of pepper told me that buying will be very slow from that market as they still have 40 K MT pepper lying in various warehouses . There is a huge liquidity crunch in the market because of the long transit time taken and importers who are also cash starved so turning money has become difficult to meet the working capital requirements and Banks completely tightening their finances to exporters which was easily available before looks like the further movement of prices North is halted till Brazil and Indonesia sells quite a bit of their 2024 Crop .

Buy as and when you need the right strategy to be followed till Brazil and Indo sells what they need to sell  from 2024 crop .Ocean freight also is coming down slowly as Chinese aggressive export sales are winding down

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