Black Pepper: Vietnam shipper holding Cargo, 4 months for new crop
August 22, 2017 at 2:20 PM ,
Rainbow Exports
Vietnam:
Pepper market over the last two weeks changed rapidly and tended to increase sharply from 20th July until the first half of August. Continuously for several days farmers and local traders were not offering and the price rebounded roughly 800-1,000$ per ton within 10 working days. The main reason is from Indonesia when their crop continues to be delayed and it was not as expected beside many exporters in Vietnam are in short position and have to enter the market to ensure delivery in time for importers for July and First Half of August shipment. This week, the market was stable and there was no increase or decrease significant. At present, domestic agents / farmers in Vietnam still do not rush and just offer small quantities to cover temporary costs.
Cambodia:
Survey has been already done for one more time from last week and according to view Cambodia still has a considerable quantity. Surveyor still unchanged their mind with estimated available about 40% crop roughly 10,000 tons at least. However, like Vietnam, raw material is mainly concentrated on wealthy households and almost not into sales pressure. They can keep for long time as they need.
Indonesia:
According to Indonesia's crop sources, production is about 60-65,000 tons, other sources predicting only 30-40,000 tons. In fact, Indonesia’s exporter offered very small quantity and higher than Vietnam during July until present. Many other sources predict that Indonesian will be more plentiful in early September as farmer harvest of their main crops in this time.
Brazil:
Continued to increase in accordance with the general trend of Vietnam and Indonesia, currently pepper prices from Brazil is still the lowest, most competitive. Similar to Indonesia this time, Brazil will be more plentiful in September when their crops full swing in Sept.
Reasons for Market continue steady and firm
Vietnam exporters maybe enter the market to cover raw material to make sure shipment in time.
The weather in Vietnam continues to rain a lot since July, so almost could not dry white pepper. Therefore, the temporary scarcity of white pepper and it has impacted of black pepper prices from end July and maybe this situation continue.
Importers will actively show more interesting for demand in fourth quarter 2017
Chinese traders continue to enter the market suddenly as usual.
Farmers and domestic agents in Vietnam continue to hold and only sell when necessary. They determined the new crop is quiet far until Dec 2017. Still have 4 months to sell pepper so almost do not hurry.
Market weaker
Demand from buyers continues slowly due to inventory still available huge.
Buyers have more option to cover demand from other origin.
Vietnam exporters already covered enough and keep stock position, alongside low demand from overseas buyers, which will not put pressure in the coming months.
The coffee crop is predicted to start in September, farmers and domestic agent usually to sell pepper to cover the costs and change the type of business when pepper business as slow as previous years from Sept to Dec
Indonesia and Brazil will provide more pepper to the market in September.
Note:
Attachment file is details data sheet of Vietnam pepper market first 7 months of 2017.
Please also find Prices for Whole and Ground for reference.
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