Pepper Market Review week 23 2020

The market in Vietnam witnessed wild swings during the week under review. We saw market nose diving at the beginning of the week which the trade was foreseeing but  Prices were trending higher from Thursday again which caught the trade by surprise With very little support at higher prices from importers. Reports of quite short covering coupled with new buying interest at higher levels for prompt shipment  triggered  the spurt .At close of the week CIS buyers were active and paid. US$ 2575 for 500 gl Asta US$ 2650 for 550 gl Asta and US$ 2700 FOB HCMC.Local raw material prices which fell from 60,000 VND to 50,000VND per kilo moved up to 54000 VND per kilo without much quantity offered. Speculators are still in the mix however importing countries are mostly watching from the sidelines except sporadic trades from buyers who cover their needs only on month to month basis irrespective of price levels ..Lampung prices have been silently increasing. Adverse new crop assessments, low inventory/carryover and currency factors have pushed selling ideas upwards. Travel restrictions within Indonesia have limited the ability to independently survey the vines however estimates and reports from farmers are much lower than 2019 totals. One of the leading exporter commented that they will be more than happy if the 2020 crop fetches 20.000 mts .New crop quotes were unable to obtain but based on local prices and US$ VS IDR exchange rates FOB  prices should be around US$ 27000 .Covid-related complications in Vietnam are limited at the moment. Next crops due are Indonesia and Brazil, both harvesting later this summer and both the countries are reeling under Covid 19 at the moment .On Friday no prices were available from Brazil even for new crop as Vietnam exporters were anxiously looking to shop there. Given the current market and supply outlook through the end of the year, any problems would create a very bullish landscape.Stay always covered for nearby and use sudden dips to cover extra for maintaining safety stock levels .