Pepper Market Review Week 11 2021

Pepper Market Review Week 11 2021

Black and White Pepper Prices which started moving up after the lunar new year holidays moved up 50% locally in Vietnam with very thin volume behind due to heavy speculative activities mainly led by a big collector with the support of a non pepper guy who entered into pepper in the last quarter together with entire public who had money started investing money in pepper which didn’t allow exporters to buy as the collectors were selling at higher prices and not delivering to exporters to whom they have committed several thousand tons finally defaulted and gone under causing millions of dollars to the pepper
Exporting Community.

With little over 35% harvest done from 2021 Crop only by now Exporters waited and prices kept moving at a very rapid speed exporters were caught in the trap so delays and defaults to be expected and planning has to be done accordingly as the entire supply chain is disrupted in Vietnam

We saw massive price increase in I Brazil India and Indonesia  as these origins were following the rise in Vietnam .Importers who were buying on month to month basis finally lost their nerves and paid prices as high as 4100 FOb for 500 Asta cleaned snd USD 4200 for 570 Asta and USD 6200 for DW White of Vietnam Origin and both Brazil and Indonesia Asta cleaned were paid USD 4000 FOBfor April Shipment .Indian MG-1 prices cross’s the USD 5500 mark at close of business on Thursday and still offers were not available .We see further potential of Prices in India moving up further but other origins the Steam seems to be loosing out as we saw late Thursday night hundreds of ton pepper was offered in the market by some Big Collectors but exporters were not lending their hand as they just can’t as bankruptcy is glaring across the Board

We feel the prices will be cooling of soon and by first week of April prices should be on a level playing field and if it doesn’t happen many commitments may be unduly delayed/defaulted and the market will be in Chaos as currently the Chinese are also quiet and not adding oil to the fire

Keep a close watch on the market and take your call on your need and act

Have a great week end

Best Rgds

Jojan Malayil 

Bafna Enterprises/ India

United Spice co Ltd / Vietnam 

+91 9895 424290 + 84 1244 594 763 

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