Pepper Market Update 18 th May 2020 and Vietnam Pepper Exports January through April 2020

Black and White Pepper Prices opening firmer today after a total flat market in week 20 after it increased by almost 22% from the lows of 2020 harvest

500 gl Asta quotes today at USD 2150 FOB HCMC 550 gl Asta cleaned USD 2210 and 570 Asta USD 2260 FOB HCMC DWWhite Asta cleaned USD 3125 FOB HCMC

New demands on Saturday and Sunday at current levels for Prompt shipment and short covering by local exporters pushed asking prices of farmers and collectors to new highs of the crop season.From our very reliable sources we understand that some of the major shorts were paying quietly higher prices to Chinese traders who were absent most part of week 20 after prices reached new highs.Stay covered for near term as we saw sharp increase of prices for new crop Brazil and Indonesia at close of last week and are shying away from quoting or indicating any levels today so far.

We may see some respite if Chineese withdrew from the market otherwise one has to bite the bullet soon.

January through April  2020,VPA members export volume increased by 7,797 tons over the same period, accounting for 70.9% of the total exports from Vietnam .increase in official exports to China through customs frontiers increased the share of Non VPA members to almost 30% of the total Volume

Imports of Asia in the first four months of the year decreased by 1,254 tons to 64,868 tons but it remained the largest import area of ​​pepper from Vietnam, accounting for 55.2%. China ranked first with 26,266 tons, accounting for 19.8% and down 2,635 tons over the same period. India is also a market with a sharp decrease in import from 10,102 tons in 4 months of 2019 to 5,978 tons in 4 months of 2020, a decrease of 40.8%. Some other import markets decreased including Iran decreased 736 tons, Arabs decreased 592 tons, Indonesia decreased 236 tons, … Imports increased sharply in Myanmar, up 3,346 tons to 4,117 tons, Nepal increased 1,500 tons to 3,826 tons, …

The import to North America also increased by 2,622 tons, of which the US increased 2,144 tons to 19,759 tons, accounting for 16.8% and was the second biggest import market of Vietnam Pepper. The  import To EU shown an  increase of 2,976 tons to 20,438 tons, accounting for 17.4%, led by Germany  4,137 tons, up 562 tons. Followed by  Netherlands, Russia, England and Turkey, Imports dropped the most in Ireland, dropping 1,791 tons to 385 tons. The African import accounted for 8.9%, up 2,986 tons over the same period, led by Egypt  4,932 tons, up 2,141 tons. Followed by Senegal 1,506 tons, up 119 tons.