Pepper Market Review Week 26 2020

The market in Vietnam saw prices on a stabilizing mode from Tuesday as most of the exporters who were shying away from the market finally showing heads up and started buying almost two weeks after the recent massive run up .Prices were trending higher from Friday on  reports of the local speculators who bought pepper on paper squaring off their positions with collectors.Limited business was done at  US$ 2475 for 500 gl Asta US$ 2525  for 550 gl Asta and US$ 2575 FOB for 570 gl Asta FOB  HCMC.Local raw material prices which closed  50,000 VND per kilo in the previous week Closed 49000 VND per kilo without much quantity offered by collectors as farmers are not participating. Local speculators still in the mix however importing countries are mostly watching from the sidelines as they expect new crop Lampung prices will put pressure on balance  in spite of  adverse  new crop assessments, low inventory/carryover and currency factors .New crop quotes were difficult to obtain as exporters are very Cautious and based on US$ VS IDR exchange rates FOB  prices should be around US$ 2600 -2650 FOB . Next crops due are Indonesia and Brazil, both harvesting later this summer. On Friday prices were available from Brazil  for new crop  in the range of USD 2300-2350 FOB Belem for Sun dried B1 material . Given the current market and supply outlook through the end of the year, any problems would create a very bullish landscape in a natural manner Stay covered for nearby and use sudden dips to cover extra for maintaining safety stock levels