Pepper Market Review Week 12 2019

Black and White pepper Prices in Vietnam showed little relief with Chinese traders retracted from the market on Thursday  with issues of certificate of origin at Border.This gave some opportunities for local exporters to cover their pending requirements for March and early April shipments .Local prices which moved up as high as 48.000 VND per kg dropped to 46500 VND per kg except some shippers others were not willing to offer at this level as they see a potential danger  as the Vietnam Local price movements are completely driven by Chinese traders and local exporters have no other go other than to follow them . Reportedly at close of week Chineese traders were back and local collectors were unwilling to offer as the  flow of arrivals from farm gate is very minimal as they are approaching to the end of harvest which should be completely over in the next 15 days . Vietnam will end up exporting 70.000 mts by end of March and another 50.000 mts is already committed by exporters mainly for 2 nd quarter of the year besides some quantities for 3 rd and 4th quarter. Since Brazil sold most of the crop already Vietnam won’t be having any competition till September/October and continued Chinese support every other day  will hold the local prices in Vietnam steady to firm and we see no chances of  pepper prices going down to the low levels we saw in Feb

Brazil has resumed trading new crop at US$ 2200 Fob Belem for Sun Dried B1   for September/ October shipments which is 12% more than what it traded some time ago for the same position

Indonesia who was keen to sell new crop a fortnight ago was shying away without giving price indications seeing prices in Brazil and Vietnam inching higher and Grinder Buyers from all over the world looking for coverage till end of the year realizing that current levels are very fair and good for the whole year. Lasta  quotes which were shown at US$ 2550 Fob Panjang for AUgust: September and October a fortnight ago was no

Longer available .Malabar Mg-1 still quoted US$ 5000 plus with Indian Rupee strengthening against UE$

Continue to cover in dips if coverage not done yet

Please ask for pesticide complaint whole Black steam Sterilized with EU compliance