PEPPER MARKET

Vietnam Pepper prices currently looks very attractive and I will recommend customers to book for their August and September needs now if coverage is needed.

Brazil nothing can be expected in August as crop from southern Brazil is a disaster. Against 15k production last year this year they do not expect even 5 K. Northern Brazil crop usually start available for exports from September/ October onwards only and it takes quite a bit of time to finish harvest. So pressure from exporters for sales from Brazil will be limited. Current quotes for B1 fo. Belem 9100 fob for August/ Sept shipment. Other than Brazil Real weakening against USD making prices in USD terms cheaper we do not see any reason for a drop in prices drastically.

Indonesia this year it’s confirmed the crop is smaller and late. Unlike in the past the harvest which used to be over in 2 months this year will be over only in a prolonged manner and its estimated it will be over only in 4 months. Indonesian sellers do not have much sales in their books and do not want to compete Vietnam which is currently around Usd 500 lower than asking prices of Indonesia. Quotes received for Lampung Asta currently USD 9100/ 9150 fob for August/ Sept shipment and where as Vietnam even after exporting 120.00 mt from its current years production is available at usd 8600/8700 fob. Vietnam Dong appreciating against USD slowly every other day.

India still leads the paradein pricing with very high prices which only Indians can afford to pay and do not see any chance competing with Brazil and Indonesia this year.Indian MG 1 currently quoted usd 11000 pmt fob Cochin. Sri Lankan new crop which is underway a true follower of Indian pepper prices currently for faq grade quoted Usd 9500 pmt fob Colombo.

Source: UNITED SPICE CO., LTD.

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