Pepper Market Review Week 22 2020

Global Pepper prices showed the biggest volatility of the decade during the week under  review spearheaded by Vietnam where local prices at farm level surged from 48500 VND to 62000 VND per kilo and then retreating back to 55000 VND per kilo on Sunday .The shorts who were strangled were having various meetings in coffee shops and pubs besides closed door meetings how to fan the fire or extinguish it could not reach any concrete decisions.The biggies have asked for  extensions and the 2nd and 3 rd tier ones there was no option but to default to stay in business .Unlike in the past buyers forget extensions and default very fast if you show them a discount than market after just six months you are back in business .Vietnamese have learnt this in the last couple of decades and some of the defaulters in the past who have made
money by this crime later turned out to be the largest exporter of the country as buyers forget the back stab quickly if shown deep discounts after a six months window.Many small buyers who shop on month to month basis were shocked and scared by the sharp increase in prices
and it was reported some of them in panic have paid very fancy prices during the week.

Most of the business done during the week was by Vietnam exporters from Brazil and Indonesia as a hedge to cut losses as availability of the produce  in Vietnam 🇻🇳 becoming  very thin day by day as the locals with money
also jumped into the arena seeing quick money to be made .

We also saw sharp increase in Brazil where fob prices moved up to US$2400 FOB from US$ 2000 and in Indonesia from US$ 2200 to US$ 2750 during the week .India still out priced with prices for Raw ranging in the 4300-4500 US$ for quite some time.

Current Volatility according to experts will settle down this week and prices will come back to 48000-52000VND before the next run and a good time for coverage of Vietnam for the requirements up to spring .

Please ask for tailor made needs of EU Complaint whole Black and white Pepper Natural and in Steam Sterilized forms besides the usual Qualities .