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Market Update January 2015
Spices
Pepper
Vietnam
In 2014 Vietnam exported 163,033mt of pepper - of which 7,693mt was imported material - comprising 55.12% of total
global exports.
As a market leader, Vietnam set the benchmark for
the global market pepper price. For 2015, it is
expected that the Vietnamese pepper price will
remain at the lowest level compared to other
producing countries.
Pepper Prices $ CFR Europe
14,000
12,500
11,000
Despite the fact that the growth rate of new
plantation areas since 2010 until now is at 20-25%
annually, unfavourable rainfall during May 2014
caused pepper yield in Vietnam to drop. Given this
combination of factors, production output for the
next crop may be the same or marginally lower than
2014, at 147,000 – 157,000mt.
9,500
8,000
6,500
5,000
Black FAQ 500 gr/l CFR Rotterdam
White FAQ CFR Rotterdam
Regions
Some early harvest has started in Dak Nong, follow by Ba Ria-Vung
Tau and Dong Nai provinces. It is estimated that about 7,000 –
8,000mt of new crop is arriving on the market in January 2015;
selling pressure in conjunction with reluctant buying from
international customers is pushing prices down.
2013
2014
Diff
%Diff
Americas
24,230
27,386
3,156
13.03%
Europe
43,933
36,741
-7,193
-16.37%
Asia & M.East
51,961
90,843
38,881
74.83%
4,963
8,063
3,099
62.45%
125,088
163,033
37,944
30.33%
Africa
Grand Total
Indonesia
Following Vietnam, Indonesia has lowered its offer; however, because the selling pressure is not as intense, the
Indonesian pepper price continues to be higher
than the Vietnamese pepper price.
ASTA-pepper price USD/Ton DDP HCMC
14,000
It is too soon to project about the next crop in
Indonesia, but according to IPC’s estimation, the
new crop is relatively promising at approximately
70,000mt.
12,500
11,000
9,500
Brazil
8,000
6,500
5,000
V-ASTA
L-ASTA
B-ASTA
MG1
Previously, Brazilian pepper was priced lower than
Vietnamese pepper, and was the lowest among
producing countries. However, with new crop
imminent in Vietnam and prices dropping every
day, whilst selling pressure in Brazil is not as strong
as in Vietnam, Brazil is starting to lose its
competitive position to Vietnam.
India
December 2014 marked the beginning of the harvest in India and it is clear that they are enjoying a bumper crop this
season. The selling pressure from India is pulling its price down. The gap between India and other producing countries
is closing as they are forced to sell their pepper to foreign markets, as was anticipated.
The Kerala High Court decided to release 6,400 tons of oil-dressed pepper for cleaning which will make more pepper
available on the Indian market.
Nutmeg and mace
Indonesia: The market is experiencing a
downtrend recently. In general, it is 30% lower
compared to last year. Due to systematic
production increase in islands such as Siauw,
Manado, Tahuna and others, more material is
available. There are rumours about a VAT scheme
which is being played by some local traders that is
almost certain to pull market prices down further.
The weakening of the Indonesian Rupiah against
the US Dollar also contributed to the sliding prices
of nutmeg and mace in the export market. It can be
stated with certainty that the current crop is fairly
good.
Nutmeg and mace prices CFR Europe
20,000
18,500
17,000
15,500
14,000
12,500
11,000
Sound Shrivel Siau/Ambon- afla guaranteed nutmeg CFR EU
Broken Mace CFR EU
Ginger
China: Because of a shortage of domestic
demand for fresh ginger, Chinese dried ginger still
stays elevated and stable. The old crop is being
offered at $200 lower than previously to clear the
stock.
Ginger Prices CFR Europe
6,000
5,000
4,000
Nigeria: The market price is simulating the
Chinese ginger price. Because of political issues,
there were difficulties in following through on
promised deliveries for overseas buyers; however,
demand from Africa was adequate to support the
Nigerian ginger price. In December, anticipation of
a good crop from India caused the price to fall
appreciably.
3,000
2,000
1,000
0
This year in January, there is a surge in demand
from overseas and particularly from Sudanese
buyers. They normally sell Ethiopian ginger to the Middle East but as most of the Ethiopian ginger plantations have
been destroyed by a fungus this year, they have turned to Nigeria and hence pushed up prices.
China ginger Pre-Cut low SO2 CFR EU
Nigeria ginger split Aflatoxin warrantee CFR EU
India Pre-cut ginger
India: The harvest has started and some small volumes of dried ginger have hit the domestic market. This year,
domestic demand is supporting fresh ginger prices; as such, farmers are staying away from the dried ginger
business.
Turmeric
India turmeric 2% curcumin CFR Europe ( Nizamabad variety)
3,000
2,500
India: Domestic consumption plays an important
role in determining the Indian turmeric price.
The market price is staying stable in comparison
to last year but at a lower level.
2,000
It is expected that the price will go down when
turmeric enters its harvest period at the end of
February.
1,500
1,000
500
0
India turmeric 2% curcumin CFR Europe ( Nizamabad variety)
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