Spice market update: cardamom auctions started again
May 28, 2020 at 3:36 PM ,
Der AUDITOR
Cumin
Despite high arrivals, cumin prices remain stable. Traders report that demand from spice producers is increasing, but is currently still limited by the shortage of labour caused by the coronavirus pandemic. Buying interest from abroad also remains satisfactory, especially from Europe and the USA and, as Ramadan is over, also from the Gulf States again. Overall prices are still lower than in the same period last year. Grade A cumin currently costs USD 1,880 per metric tonne.
Coriander seeds
Coriander producers are reporting low demand, which they mainly attribute to the ongoing lockdown. Typically, prices are supported by large companies buying huge quantities of coriander seeds in Masala, but this year they have only bought 60-65% of their capacity. Furthermore, no long-term contracts are concluded and traders only buy as much as they currently need. Coriander, Eagle, 5% split is trading at USD 790 per metric tonne, which is USD 10 per metric tonne below last week's price.
Turmeric
Sports market prices for turmeric continue to decline and futures are also trading lower, partly due to a large crop. Trading has been sluggish in the past few days, with no trading activity in Nizamabad due to the lockdown. Market players report that farmers are holding high inventories until prices stabilize again. Trumeric, salem, double polished is currently trading at USD 865 per metric tonne.
Chilli
Despite nationwide closures and trade restrictions, the chili markets in Andhra Pradesh and Telangana resumed operations, albeit on a limited scale. Market players report that a particularly large number of private transactions are taking place and demand from spice manufacturers is also rising again, while exporters are still holding back. Chilli, S4, stemless, currently cost USD 2,175 per metric tonne, which is USD 25 per metric tonne more than last week.
Cardamom
After more than two months, the Spice Board in Idukki, a district in the Indian state of Kerala, is resuming cardamom auctions. However, market players are sceptical, as around 70% of buyers usually travel from Tamil Nadu and there are strict travel restrictions due to the Covid-19 pandemic. The international demand is still very weak. Cardamom exports from Guatemala, for example, have declined by more than 20% compared to last year, although they had followed a rising trend before the pandemic broke out. Cardamom, 8 mm costs USD 42,890 per metric tonne this week, that is USD 1,000 per metric tonne less than last week.
Black pepper
Domestic demand has picked up noticeably and market players report more buyers than sellers, which also pushes up prices. The international market is also showing firmer trends. In Sri Lanka the main harvest is about to end and the first offers are reaching the market. Indian producers could switch from Vietnamese pepper to Sri Lankan pepper, which has a higher piperine content of 6%, if prices are favourable. Black pepper, 500 GL is traded at USD 4,950 per metric tonne.
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